The real estate market in New York City is insane. That’s one way to look at it, according to real estate brokers that are having the best financial years of their lives. For the last seven years, New York City real estate prices have increased by double digits every year. The prices in some parts of the city have reached double-digit million dollar figures. One billionaire has a contract for a triplex worth $200 million in the Central Park South area of the city. Real estate brokers say that is just the beginning of mega-million dollar price tags for new construction in several areas of Manhattan.
Town Residential Managing Director Ryan Fitzpatrick thinks residential properties in Manhattan and Brooklyn will continue to increase in value, but some agents from other real estate companies disagree. The executives at Cushman and Wakefield believe the 2016 commercial real estate market will not be as strong as it has been the last two years. The last two years brought record-breaking prices to the investment market. In 2015, more than $74 billion in sales were reported across the city.
The Cushman and Wakefield group does see some cracks emerging in the investment market, but that is not the case in the residential market, according to Town Residential brokers. Town Residential brokers don’t have time to sleep because their phones are constantly ringing, and most of them like it that way. The six featured residential properties listed by Town Residential have a combined value of more than $49 million, and real estate firms around the city are experiencing the same kinds of prices.
Cushman and Wakefield are basing this new, somewhat pessimistic forecast on land prices. The company sees a slight decrease happening in certain areas of Manhattan, but no one broker is ready to say that the investment market will have a down year in 2016.
Even the New York Times is bullish when it comes to writing about the real estate market in the city. According to a recent article, prices continue to increase, and buyers will continue to pay them. New York is not like other cities. New York is the beating heart of the nation. It may not beat the way some people like, but there’s no doubt it beats in sync with millionaires and billionaires around the world.