IP Global, a property firm, states that GCC investors are returning to Manhattan buoyed by strong yield opportunity and a low cost of funds
According to the firm, Manhattan has traditionally been a desirable market for property investment for both expats and GCC nationals, looking to acquire 'trophy assets' in the largest city in the USA. Such appetite was been weakened by the global crisis in recent years, but is now returning. At present, foreign buyers make up 15% to 20% of all home sales in Manhattan
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IP Global, a property firm that specializes in providing its clients with unique investment opportunities in established and emerging markets around the world, today states that GCC investors are returning to Manhattan. An iconic destination in terms of culture, finance, media, entertainment trade and telecommunications, Manhattan has traditionally been a desirable market for property investment for both expats and GCC nationals, looking to acquire 'trophy assets' in the largest city in the USA, whether for owner-occupier purposes or as a sole investment. Such appetite was been weakened by the global crisis in recent years, but is now returning, buoyed by strong yield opportunity and a low cost of funds.
Tim Murphy, Founder and CEO of IP Global comments, "Manhattan has long been one of the most popular markets in the world for international buyers, with many of those gravitating from the GCC. At present, foreign buyers make up 15% to 20% of all home sales in Manhattan."
He continues, "Whilst many GCC investors chose to sit on the sidelines throughout the global crisis, they are now returning, attracted by a post crisis uptick in property values driven by short supply, low cost of funds and security of ownership rights."
According to the latest IP Global research, Manhattan property is performing strongly, with prices growing for the past six straight quarters, and property taking on average 79 days to sell, down 10% from 2010. However, prices remain approximately 23% off the 2008 peak, representing a strong potential uplift on initial investments. In addition, occupancy in Manhattan currently sits at around 92% meaning rental income is secure. Manhattan also offers strong appeal in the mid to long-term, with prices up 67% from 2000.
This finding comes at a time when IP Global launches 75 Wall Street, its first freehold property in New York. This beautiful building, once HQ to JP Morgan, is located on the home of the NY stock exchange, just a few steps from prestigious brands such as Cipriani, Tiffanys and Maison Du. It comprises 149 luxury units across 24 floors, including studios, studio lofts and a choice of one- to three-bedroom units, all of which offer the last word in luxury living.
Tim Murphy notes that apart from its stellar location, the project has a number of key selling points. "Firstly, 75 Wall is located above the five-star Hyatt Hotel so residents will benefit from the fantastic amenities of the hotel such as room service, housekeeping and access to the hotel facilities. This will have a positive impact on rental demand and will command a premium rent."
"Secondly, it is the only freehold residential building on Wall Street that offers investors Zero Property Tax until 2018 (and following this, a 4-year build until 2022)."
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