New York City – a target market for new investors: Richard L. Jordan
As one of the most expensive cities in the world, New York City has become increasingly attractive to international investors in recent years. Well-known international property consultancy Douglas Elliman Knight Frank recently released its market report of new development on New York in Q3 of 2018. The Global Times (GT) sat with Richard L. Jordan
(Jordan), senior vice president of Global Markets for Douglas Elliman Real Estate, who shared his insight and vision on property and investment in New York City in the US.
GT: What’s your perspective on the future of the real estate market in the US compared with other global cities, and what are the advantages of investing in the residential market in New York City?
Jordan: In 2018, we have experienced a slowdown in the global economy. In a period of slow growth, geopolitical volatility and economic uncertainty, most investor strategies shift to capital preservation over higher risk investments. In this climate it is critical to focus on select markets that have historically maintained value and appreciated consistently through multiple real estate cycles. Today, New York City is arguably the most secure market for such preservation in light of the current economic fundamentals and market transparency. In analyzing the US economy, the unemployment rate is nearing its lowest point in almost 50 years at 3.7 percent, while the equity markets remain strong. New York City specifically is the world’s largest urban economy with $1.7 trillion in GDP and is the world’s largest financial hub, accounting for 40 percent of global market capitalization between the NYSE and the NASDAQ. New York City’s GDP growth is estimated at 20 percent over the next five years, which should create the conditions for the preservation and future appreciation investors are seeking. Additionally, many top-tiers markets recently instituted economic cooling measures, resulting in additional taxation for foreign purchasers. In contrast, the US has no such economic deterrents for inbound foreign buyers as it relates to real estate.
GT: What about the job opportunities in New York?
Jordan: As mentioned previously, New York City is the world’s largest financial hub, which provides a large number of opportunities within the financial sector. New York City has also experienced significant growth in the tech sector, now second to Silicon Valley in the amount of Venture Capital raised for startups. In addition, there is currently $125 billion of planned infrastructure investment over the next five years, which will further improve the economic landscape of New York City. The possibilities are endless.
GT: How about the education resources in New York?
Jordan: If you look at higher education, eight of the top 10 universities in the world are in the US. If you look specifically within New York City, there are 238 universities and colleges. Some of the most famous notable universities in the US such as Columbia University and New York University are located in the heart of the city. New York City is also home to world-renowned performing arts institution, The Julliard School as well as Parsons School of Design, the Fashion Institute of Technology, and the School of Visual Arts, among many others. There’s a wide range of options for students.
GT: How about the public security in New York City?
Jordan: New York City is now considered the safest big city in the US. It continues to become safer through policy and continued growth and revitalization of various neighborhoods. As mentioned earlier, there is currently $125 billion of planned infrastructure investment throughout the city.
Aerial view from 125 Greenwich Street, New York