The luxury real estate market explodes in New York

13 September 2017

Chinese, Russians, Swiss, Qatarians, and even French: under pressure from foreign investors, prestigious real estate prices are reaching new heights in Manhattan.

Ten stories above the Hudson, on Riverside Drive, the former triplex built in 1908 for the press magnate W.R. Citizen Kane Hearst, a 650 square meters with 1,000 square meters of terraces overlooking the river, welcomes visitors. Its current owner, an art collector, puts it on sale for $ 24 million ... Above Central Park, on the 18th and 19th floors of the Plaza, stylist Tommy Hilfiger hopes to draw 75 million of his superb duplex over 500 square meters - of which the lucky buyer will also pay monthly of 20,000 dollars of various charges and taxes.

In Manhattan, the luxury real estate market - from $ 5 million - and the ultraluxe - from $ 15 million - is in turmoil. According to Charlie Attias, a broker for the New York-based Corcoran network, "last year, 708 sales were between $ 5 million and $ 15 million, and 122 sales were over $ 15 million. are already signed between 5 and 15 million, and their number reaches 86 over $ 15 million, or 40% more. "

Between $ 8 million and $ 50 million

The crises pass and the prestigious stone of Manhattan resists. After the attacks of September 11, 2001, the market quickly rebounded and climbed until 2004, before calming down. If the subprime crisis logically took effect from 2009 to 2011, "since the summer of 2012, investors have regained confidence in the US economy, and today activity and prices are exploding, renewal of international demand, "notes Charlie Attias. Chinese, Russians, Canadians, Swiss, Mexicans, Brazilians, Monegasques, Qatarians invest between $ 8 million and $ 50 million to afford a stone jewel in the Big Apple.

But not just any one: "They want elevated floors, panoramic views of Central Park, rivers or towers of Manhattan, and modern or renovated interiors, and for pre-war buildings, a seal and a history." Pied-à-terre, heritage investments, rental investments, all uses are listed.

French buyers are not outdone, who spend between 2 and 10 million. The luxury fever affects condos, condominiums, and co-ops, which are jealously guarded by old New York families, where white paws are needed to become owners. Or the Hamptons villas, the Deauville of the rich New Yorkers, where the property of Vince Camuto, co-founder of Nine West, 2,000 square meters on 6 hectares on the Ocean, is for sale at $ 85 million.

Skyscrapers at the top

But it is the skyscrapers, these new skyscrapers increasingly higher and racy, that capture the most important budgets. Meanwhile, the 425-meter-long 432 Park Avenue is completed, culminating at 425 meters, in the One57 tower, designed by French star Christian de Portzamparc, that the two record sales of Manhattan were recorded: 91.5 million dollars for an apartment sold to Bill Ackman, the founder of the Pershing Square hedge fund, and $ 100.4 million for a penthouse acquired by Qatar's prime minister, nearly 300 meters high.

Faced with this fever, some experts, such as Miller Samuel, are worried: they recall that sales above 3 million represent only 10% of the activity and fear that the excesses of luxury will create turbulences for the rest of the classic Manhattan real estate, which also rose, to $ 18,000 per square meter on average.

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