It is interesting to notice the fact that there are many luxury homes in New York but most of them are not actually available for sale. Even if they were, people would not actually buy them because the prices are basically too expensive. Americans that have millions to spend will prefer to buy a different home in New York, one that is not as expensive as those that are top tier as they can actually save money and reach the same degree of luxury without having to spend so much in the beginning. The toniest precincts of New York have most of the apartments vacant 10 months every year.
Foreign Buyers In New York
The biggest buyers of luxury homes in New York actually from other countries. They have shell companies that protect their identity, they avoid taxes and actually have homes in their property with the sole purpose of making money through rentals. The list of millionaires that have luxury homes in New York include Dmitry Rybolovlev. He paid $88 million for a Manhattan condo. We also have Nassef Sawiris, Egyptian businessman that paid over $70 million for a co-op.
Because of the foreign investments made in the New York real estate market, we see a reduced hosing inventory and prices that were driven way up. However, the recession saw the market drop and now we see prices that are at around 10% higher than they were in 2004. With this in mind, purchases are not actually seen as great investments. Many thus end up renting their luxury homes in New York instead of selling them.
Where Does New York City Rank As A Luxury Market?
Many believe that New York has the most expensive properties in the luxury real estate market but that is not the case. That distinguished title goes to Hong Kong. New York City is placed 6th after cities like Moscow, Paris, London and Tokyo. This is despite very high price tags paid by Ekaterina Rybolovleva and Steve Wynn for penthouses in the Upper East Side.
Top Of The Line
When it comes to luxury homes in New York, the top spot is quite clear. The most expensive apartment in New York is the penthouse of the Pierre Hotel. When it hit the market it had a price tag of $125 million. The value is most likely a lot higher at the moment. We are referring to an Upper East Side property that covers the top three floors of the hotel, located at 795 Fifth Avenue.