US Real Estate Market

As it stands, the United States still remains a safe haven and a truly profitable investment destination for foreigners, particularly New York City.  The real estate market in the United States certainly remains a safe haven for European buyers in a rather gloomy and unstable economic climate as the Euro remains strong. As 2016 creeps in, all statistics point towards a bright investment future in the US real estate market. In 2014, Fortune reported the findings of the Knight Frank report, which rated New York as the 7^th globally in terms of per square meter price.

The other good news is that New York has a low vacancy rate of less than 2%, with empty apartments taking less than a month to find occupants.  As a matter of fact, the rental investment feels pretty good in New York and by extension, the entire United States, although many would say that investing in New York is nothing adventurous. It is one of the main cities in the world, including hosting the first global stock exchange, the headquarters of the US Federal Reserve (the Fed) and the United Nations headquarters. New York attracts capital from all over the world and is home to more than 200,000 businesses. Do not forget tourism - the fifth industrial sector of the city. In 2012, New York recorded a total of 52 million tourists, an absolute record! The city thus emerged as the top tourist destination in the United States for foreign tourists with a market share of 33%.

One quote perfectly sums up a property investment in New York - the New York Daily News estimated that "the only investment as safe as gold might be real estate in New York."

The housing market has picked up across the United States, according to the latest barometer by S & P / Case-Shiller "home price index". Nationally, prices have risen by over 1% compared to the previous year at 2.3%. Further, all of the city’s landmark barometers are experiencing a growth in their respective real estate market. Growth accelerated in June and maintained the trend. As a matter of fact, only Charlotte and Dallas saw their growth rate decline but only with 0.1% each. In the words of David M. Blitzer, Chairman of the Index Committee at S & P Dow Jones Indices, “The US real estate market seems well and attractive to investors".

During the second quarter, housing prices were up 6.9% from the previous quarter and 1.2% higher than in the same quarter of 2013. Six major cities including New York, Los Angeles, Atlanta, Chicago, Las Vegas and San Diego, have not experienced any declines in the recent price with an influx of foreign exchange directed towards them.

In essence, there are many reasons to warrant a further influx of foreign investment in the US real estate market ranging from the recovering economy, the strengthening dollar to the country’s stability. As many regions find themselves in turmoil and with bleak future, signs are the US is on a path to recovery.

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