An uptick in direct enquiries from UAE-based real estate investors looking to purchase in New York is being seen as the city reverses the urban exodus experienced at the start of the Covid-19 pandemic.
According to Knight Frank, the increase in enquiries is particularly focused on prime Midtown.
The number of Manhattan properties which saw contracts signed in October has risen by more than 43 percent to 1,203 compared to the same month in 2020.
In addition, since reaching their pandemic peak in August 2020 new listings have declined, confirming the extent to which the market is gaining traction and stock is being absorbed.
Knight Frank said prices at the prime end of the market have been falling for nearly four years, but a return to growth is being witnessed, with expectations that annual price growth will reach 5 percent in 2022.
This would represent Manhattan’s highest rate of growth in seven years.
Georgina Atkinson, associate partner at Knight Frank, said: “Recent sales volumes in Manhattan provide evidence of the uptick in demand. The relaxation of international travel restrictions should support the market too, with vaccinated overseas buyers once again able to 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 United States since the onset of the pandemic, domestic buyers have been the primary purchasers of New York real estate in the past 18 months.
“However, what we are now starting to see is the return of international buyers specifically and an uptick in direct enquiries from clients based in the UAE looking to purchase in New York, more specifically in prime Midtown.”
Home to iconic New York sites with Park Avenue at its heart, the Midtown neighbourhood is home to some of the city’s most appealing properties, including The Towers of the Waldorf Astoria.
The third quarter of 2021 saw the most sales recorded at all price points in Manhattan, with Midtown significantly contributing towards this. Pent-up demand, rising investor confidence and persistently low interest rates are likely to continue to fuel the market here, with luxury properties expected to be most sought-after, said Knight Frank.
“This has been particularly apparent for The Towers of the Waldorf Astoria, located on Park Avenue. Buyers are choosing to purchase here for several reasons, including the building’s iconic address, its full-service lifestyle offering and unsurpassed level of amenities,” Atkinson said.
High-net-worth individuals, including those from the Middle East, have shown increased interest in proven hospitality brands for their residential purchases over the last few years.
Recent Knight Frank data highlights that branded residences can attain a premium of 25–35 percent ahead of comparable non-branded schemes and more than one in three buyers would be willing to pay this premium.
Waldorf Astoria New York is now offering the opportunity to purchase one of 375 contemporary residences in The Towers above the legendary hotel, with Knight Frank receiving over 8,000 inquiries from all over the world.
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