Why New York City is a Popular Urban Real Estate Destination
New York City is home to a lot of people. Many more visit the city for business or pleasure. It is the biggest city in the United States with five major boroughs. These are Manhattan, Queens, The Bronx, Brooklyn and Staten Island. New York City is among the most stable real estate markets in the world due to high transparency levels and the fact that it is highly underleveraged. A big number of prominent business persons, such as Joe Sitt have made NYC their investment center. Consequently, this has attracted many real estate investors. The most popular real estate developers are:
-Two Trees Management
-Thor Equities, owned by Joe Sitt
-The Trump Organization
Before they consider investing in real estate, development firms have to consider a few factors such as:
Real estate requires a stable economy. Even during the real estate crisis, New York has always remained stable. The real estate companies always manage to realize high profits throughout the economic cycle.
Involvement of celebrities in real estate development boosts the industry. Celebrities such as Jimmy Buffet, David Robison, Madonna, Oprah and Tom Brady among others have been a part of developments in New York, and this has increased the popularity of the real estate industry.
If current mortgage interest rates are low, companies can easily access credit to invest, and the clients can also access ready cash to purchase the property. Due to the economic stability in New York, the inflation rates are low hence the mortgage rates are relatively low and affordable.
Transportation and communication networks play a vital role in real estate development. In New York, the residents rely heavily on public transportation. Therefore, when constructing there, developers need to know that residents will need easy access to subways and train stations.
The increase in population raises the demand for housing. The population in Boroughs is on the rise, and this means there is a ready market for apartments and rental units such as rental stores.
Return on Investment
The sole purpose of investments is to make profits. All investors expect their earnings from any business to be higher than the costs. Mortgages are a safe investment. It is predicted that home prices in New York will keep increasing over the next years. The local incomes are in balance with the prices, so the risk of default is relatively low.
For those planning to invest in real estate, New York City is a good choice due to the rising population and stable economic environment. The urban real estate development is now a major investment venture that guarantees returns on investment.