The Impact of Billionaires in New York’s Housing Market

10:59:29 | 2012-04-10

(New York City) — Recently, midtown Manhattan has become a new hot-spot for the ultra-rich. There are currently eleven units in the area that are priced at over $42 million and  two penthouse suits with price tags over the $100 million mark. These high-ticket listings aren’t the only multi-million dollar units to be hitting the streets of mid-town Manhattan either.

A new high-rise deemed One57, which is currently still in the construction phases, is set to add numerous additional multi-million dollar units to the area. The high rise will be 90 stories when completed and is targeted at one specific demographic; billionaire buyers. Although the project sounds ambitious, more than one third of the condos in the complex have sold and those behind One57 expect the rest to follow. This is because there has been a large surge of billionaire real estate buyers in New York and many of them have their eyes on the midtown Manhattan area of the Big Apple.

With these properties all poised to quickly sell in the market, and with numerous multi-million dollar homes selling all around the Manhattan area in the past few months, there is no doubting the prevalence of the super-rich in Manhattan. However, these billionaires aren’t just New York based buyers, or even American buyers for that matter. In fact, a number of the billionaire investors purchasing these ultra luxurious properties are actually from Russia and other areas of Eastern Europe.

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The Eastern European billionaire is such a popular buyer in the market, there was even an event held in March that specifically talked of selling multi-million dollar properties to the clients. The event drew more than 200 real estate brokers and lawyers, all eager to find out the best way to approach these clients, who are making a huge impact on the real estate market.

Their presence is so big, that is the last four years, Russian billionaires and other citizens from the former Soviet Union have signed contracts to buy more than $1 billion of residential real estate in the United States. Additionally, the most money ever paid for a New York City apartment was recently paid by a Russian billionaire by the name of Dmitry Rybolovlev. He paid $88 million for a Central Park West penthouse for his daughter.

Rybolevlev’s recent purchase was just one of many by Russian billionaire buyers. While Russian citizens may make up a large percentage of buyers, there is no denying that with the trends in luxury real estate developments and sales in Manhattan; Manhattan seems to be the place for billionaires, from all over the globe, to now call home.

—Email  rlorenzen@brokerpulse.com


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