Yes, it’s true: New Yorkers are facing stiff competition in the real estate market from highfalutin foreign buyers. And where precisely are these buyers coming from? China, Russia and Brazil, according to a break-down from The Real Deal.
Here’s the skinny on your home-searching competition:
Brazilians: The economy in this beach-loving nation has boomed in recent years, thanks largely to the discovery of off-shore oil in 2005. Brazilians are buying up New York properties faster than you lather on a layer of oil and perfect that base tan.
Brazilians have grown wealthier and done their share of buying: Average per-capita purchases in the U.S. (including real estate) jumped 250% between 2003 and 2010.
Russians: What do rich Russians like? Caviar, fine vodka, fur coats and New York real estate. The most fortunate have duffles of cash (no really) and a penchant for spending it on luxury New York apartments. While the Russian economy has weakened recently, don’t expect to see the buyers disappear. Securing some seven figure New York real estate is always a good investment when the Ruble is wavering.
Chinese:It’s no secret that Chinese buyers have been dominating the high-end real estate purchases in New York over the past few years. Desiring an American home-base for business trips, to visit kids in college or stockpile Louis Vuitton handbags, wealthy Chinese have been buying up a storm.
Chinese buyers are flooding the New York market, picking up Chelsea condos for their children and touring properties like 20 Pine, 15 Central Park West and the Time Warner Center.
There you have it folks! The Observer posits the theory that there is a direct correlation between hosting the Olympics and high-end apartment buying in the city. Expect to see hordes of Englishmen at open houses in the near future.