The Wall Street Journal just published this interesting article titled The New Global City that discusses the globalization of residential real estate. While much of this information is not new to us since we have been working with foreign buyers for many years, it is interesting to find that the number of foreign buyer transactions is growing in Manhattan and Miami (as well as elsewhere). While the Europeans are still in the US market, given the relative weakness of the dollar compared to the Euro, the WSJ article identifies the Brazilians, Chinese and Russians as the current drivers of foreign buyer transactions in the US (and internationally as well). Imagine the wealth creation that occurs in these BRIC countries when GDP growth is in the 6 to 10% range. These people are gaining wealth at a rapid rate. Since they are already heavily invested in their home countries, they would bode well by diversifying their holdings and buy US property to protect themselves from the effects of the asset-price bubbles being created in their home countries. US real estate, even with the great recession, is still a very solid investment with a long history (especially Manhattan). Besides diversification, owning property in New York City or Miami is such a status symbol around the world (including in the US). Of course, for some, it’s the actual building not the city itself, that is the status symbol. Consider the Russian composer Igor Krutoy, who “made headlines when he and his wife, Olga, purchased a 6,000-square foot 12th floor condo at The Plaza for $48 million. It was one of the highest prices ever paid for a condo in New York.” Only in New York! Featured in the article are a number of Manhattan buildings that you will find on our website: The Plaza, Trump SoHo, William Beaver House, Sheffield, and Setai Fifth Avenue. In addition, the article also comments on Jade Ocean, One Up, Capri South Beach, and Icon Brickell – some of our favorite buildings in Miami. Read full article, The New Global City, on the Wall Street Journal website.
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