With the continuous influx of new immigrants, New York City is facing a housing crisis, as industry professionals attending the 16th annual NYC Real Estate Expo held this Wednesday, October 16th, expressed. Some commercial real estate in New York is facing challenges, with office prices hitting rock bottom. Despite this, they still favor the real estate business in New York, known as the international financial capital.
In recent years, high interest costs have hindered people’s investment pace. According to a study by Ariel Property Advisors, Manhattan’s real estate sales volume approached $11 billion last year, a 45% decrease compared to the previous year, with a 33% drop in transaction volume.
In the current situation, Shimon Shkuri, the president and founder of Ariel Property Advisors, told the press, “If you ask whether today is a good investment opportunity, the answer is absolutely.”
“These next two years may be among the best investment opportunities we have seen,” he explained. Due to some regulatory measures, real estate prices have dropped significantly, but from a fundamental perspective, rents for some properties have actually been rising, especially residential rents. Coupled with increased market distress, some lending institutions have had to start canceling collateral redemption rights and selling properties. For buyers, he believes, “this is an investment opportunity.”
Apart from residential properties, he thinks that the office market prices in New York have hit bottom. “This is also a huge opportunity.”
Bob Knakal, Chairman and CEO of BKREA real estate company in New York, holds a similar view. He said in an interview with the press that the price per square foot of many New York buildings is the same as it was 20 or 25 years ago, making it possibly the best time in 40 years to purchase commercial real estate in Manhattan.
Regarding the land market, “What we are seeing is that better-quality plots are actually appreciating, while poorer-quality plots are still devaluing,” Knakal said. “This usually indicates that the market is preparing for a thorough change.”
At the same time, New York is facing a housing crisis, but progress on new affordable housing initiatives by the city government is sluggish, with some projects facing long-term legal disputes. Yet, sensitive real estate developers always manage to see new business opportunities in limited resources. Knakal, in an interview with CoStar News, mentioned that in his newly established company, one of the new hires specializes in converting office buildings into residences.
Barnes International Realty is a multinational luxury real estate company, and its CEO Thibault de Saint Vincent expressed strong confidence in the future of New York City, a global metropolis, placing New York real estate on a global scale.
“New York is one of the most famous cities in the world,” he said. “It’s a truly international city where people from around the world and other countries come to invest.” In a research study titled “the Bounce City Index” released by the company, among the 50 most suitable cities for international clients worldwide, New York ranks third in 2024 (Dubai first, Miami second).
With businesses in 20 countries and 90 offices, residing in France, Vincent visits New York twice a month. “We organize special events here, providing wine, food, live music, and opportunities to learn about art and various luxury brands and fashion expertise.”
Different from local New York real estate developers, the company promotes New York real estate globally, including in other international cities such as London, Paris, and Geneva.
As a leading real estate agent, he has observed an interesting trend among affluent clients, “People are not just working and living in one city in the world; they are relocating several times a year. They move from New York to the Hamptons in the summer, from New York to Miami or Palm Beach in the winter, some from Paris to the south of France, from London to Marbella.”
As an international real estate operator, Barnes’s business domain also covers various lifestyle art fields such as art consulting, yachts, aviation, and racing.
Vincent said they must adapt to these clients by developing apartments that meet their needs and providing corresponding lifestyle services. “They need comprehensive services to live better in this city, starting from schools, apartment renovations, to all concierge services; this is what we offer to our clients.”