UAE real estate investors refocus on New York deals as Covid rules ease
A surge in direct inquiries from UAE real estate investors looking to buy in New York has been seen as the city reverses the urban escape it saw at the start of the Covid-19 pandemic.
According to Knight Frank, the increase in inquiries is mostly concentrated in the prime Midtown.
The number of Manhattan properties signed in October rose more than 43 percent to 1,203 compared to the same month last year.
Additionally, new listings have declined since hitting their pandemic peak in August 2020, confirming the extent to which the market is picking up momentum and stocks are being absorbed.
Knight Frank said prices at the high end of the market have been falling for nearly four years, but there has been a return to growth, with annual price growth expected to reach 5 percent in 2022.
That would represent Manhattan’s highest growth rate in seven years.
Georgina Atkinson, Associate Partner at Knight Frank said, “The latest sales in Manhattan are evidence of the surge in demand. The easing of international travel restrictions should also support the market, as vaccinated foreign buyers can again explore the city and view properties in person for the first time in 20 months. “
She added, “With many overseas buyers unable to travel to the US since the pandemic began, domestic buyers have been the main buyers of New York real estate for the past 18 months.
Midtown Manhattan.
“What we are now seeing, however, is the return of international buyers and an increase in direct inquiries from customers in the United Arab Emirates who want to buy in New York, more precisely in prime Midtown.”
The Midtown neighborhood is home to iconic New York landmarks with Park Avenue at its heart and is home to some of the city’s most attractive buildings, including The Towers of the Waldorf Astoria.
In the third quarter of 2021, Manhattan saw the most sales across all price points, with Midtown making a significant contribution. Backlog, rising investor confidence and persistently low interest rates are likely to continue to fuel the market here, with luxury properties likely to be the most sought-after, said Knight Frank.
“This was particularly evident in The Towers of the Waldorf Astoria on Park Avenue. Buyers choose to buy here for a number of reasons, including the building’s iconic address, full-service lifestyle offering, and unmatched amenities, ”said Atkinson.
In recent years, wealthy individuals, including those from the Middle East, have shown an increasing interest in proven hospitality brands for their home purchases.
Recent data from Knight Frank shows that branded residences can earn a premium of 25 to 35 percent over comparable non-branded systems, and more than one in three buyers would be willing to pay that premium.
Waldorf Astoria New York is now offering the option to purchase one of 375 contemporary residences in The Towers above the iconic hotel, with Knight Frank receiving over 8,000 inquiries from around the world.
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