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is now much more appealing to Americans.”
Back in Europe, MarieHélène Lundgreen, a broker in Paris for Christie’s International Real Estate, says she has 20 percent to 25 percent more American clients than in 2014, with many hailing from New York. She recently sold a triplex apartment in Paris’ posh seventh arrondissement to a New York client. The residence, priced at 4.6 million euros, or $5.1 million, included a landscaped terrace, double-height ceilings and a fireplace, Lundgreen says.
Property prices in Europe and other foreign locations, which fell 30 percent to 40 percent during the financial crisis, still haven’t fully recovered, says Ricardo Sousa, CEO of Century 21 Portugal. He estimates that the number of New Yorkers buying beachfront residences in Portugal has nearly doubled since 2014, buoyed mostly by the lower costs.
“The financial timing for Americans hasn’t been this good in a decade,” says Sousa, whose listings include homes in the capital, Lisbon, as well as nearby coastal areas. “New York clients have especially realized this and are starting to take advantage.”
Josef Siegle is one New Yorker cashing in. A rich cultural history and abundance of natural beauty enticed him to vacation in Portugal in November. A soaring dollar and cheaper home prices were the main catalysts for buying there, he says.
Siegle, who lives in Midtown and runs a media licensing company, paid 65,000 euros (about $75,000) in April for a five-room vacation home in the Azores, an archipelago off the coast of Portugal. The 49-year-old plans to spend “another few thousand euro or so” renovating the place. The property includes unobstructed ocean views and access to hiking and biking.
“The location was really a big draw,” Siegle says. “But the strong dollar meant lower prices, so that really made it easier for me to buy.”
Sebastian Fischer, managing director at Engel & Völkers in Berlin, says the German capital has also been flooded with NYC buyers over the past few years as the city’s “hip” profile expands and the rising dollar keeps prices relatively cheap. He’s handling sales at Studio House Berlin, a new condominium under construction in the trendy Prenzlauer Berg district. Apartments include soaring beamed ceilings, rosewood flooring and sleek, German-made kitchen appliances. With prices ranging from just 106,000 euros to 247,000 euros ($117,000 to $274,000), Studio House isn’t just targeting Germans.
“These kinds of prices are made to appeal directly to Americans who now have more buying power in Europe,” says Fischer, who traveled to New York earlier this year to market the project to investors. “It became clear to me on that trip that buyers in New York City felt the time was right to invest.”
NYC-based Liam Carroll says he watched real estate prices fluctuate overseas for years before buying an apartment in Berlin in March. “I’d see the dollar inch up, and realize the property I’m looking at is actually cheaper today than it was last month,” says the 60-year-old retired oil trader.
Carroll and his wife fell in love with Berlin’s gritty charm during a 2015 visit and decided to buy there. The couple paid about ,200 euros per square meter (about $4,600) for a renovated prewar apartment just over 100 square meters (about 1,000 square feet) in Mitte, a former East Berlin district dotted with trendy bars and cafes. “Timing is everything — in real estate and in life,” says Carroll, who intends to move to Berlin later this year. “The time was right for me.”
Of course, New Yorkers aren’t alone in investing overseas. The number of overall American buyers searching for homes abroad rose about 30 percent in 2015, according to Leading Real Estate Companies of the World. The numbers are based on inquiries received through its network of more than 500 real-estate firms.
Sally and Louis Cannon of Michigan have three kids living in Manhattan: a 29-year-old son working in private equity, a 27-year-old daughter in marketing and a 24-year-old son studying at New York University. Their location convinced the Cannons that it was time to buy in the British Virgin Islands. ”All of [the kids] thought it was a good idea to buy a place where we could vacation together,” says Louis, a 58-year-old heart surgeon.
So the couple bought land at Oil Nut Bay, a Caribbean community of 88 total homes spread across 300 acres on the eastern tip of Virgin Gorda, the thirdlargest of the British Virgin Islands. Homes and lots range in price from $2.95 million to $50 million with sizes up to 50 acres, according to the developer, Victor International. “We all love it down there, so it just made sense to invest in the Virgin Islands,” says Sally.
The Cannons join a growing number of Americans returning to the Caribbean after the sluggish years of the 2008 financial crisis.
James Burdess, head of the Caribbean desk at real estate agency Savills, estimates that property prices on some islands sank by 30 percent after the crisis and have yet to fully recover. “The falloff in prices actually helped fuel higher demand,” says Burdess, adding that islands like Barbados and the British Virgin Islands are seeing the most increase in activity. “Americans have really been a very big part of the recovery in Caribbean property sales.”
A proposed villa at Oil Nut Bay (above) in the British Virgin Islands, one of the most vibrant markets in the Caribbean for secondhome ownership by US and foreign buyers.