Investors Create Stability In lucrative Manhattan Luxury Real Estate Market

By Rich Keith


There are many clues that investors consider when determining whether a particular area is likely to be a sound investment or not. One of those factors is the behavior of other investors in the area. Not only does a gathering of investors mean that others have determined the area to be safe, but it also means that their influx of cash is likely to keep the area stable. According to an article on Yahoo Finance, New York City is turning out to be a haven for real estate investors around the world.

Why Manhattan is considered "top of the heap"

Not all of New York City is considered safe; the particular niche for investors is luxury real estate in Manhattan. International investors are buying up luxury properties as a place to stash their cash as economic turmoil in Russia, China, and parts of Europe are making other investments a bit shaky. Add to that the fact that gold, the standby safe haven for the last several years, is also becoming a riskier investment. Why are these foreign investors turning to Manhattan?

“From a worldwide standpoint, Manhattan real estate is truly the ultimate safe haven. There is liquidity, strong demand, and because Manhattan is an island, a limited supply of future product,”
- Donald Lutt, senior managing director for financial services at Colliers International

In an email to CNBC, Donald Lutt, senior managing director for financial services at Colliers International, stated that liquidity and strong demand are contributing to the island becoming the "ultimate safe haven" for investors. In addition, the fact that Manhattan Island will always have a finite amount of space means that the supply of future product will always remain limited and further drive up demand. Most experts also agree that even though mortgage interest rates are expected to rise over the next few years, global demand for luxury property in Manhattan will keep the rising value of the properties stable.

Great news for LifestyleOne investors

Since the value of luxury real estate in Manhattan is likely to grow, there is no better time than right now to invest in the LifestyleOne portfolio. In addition to the range of properties along the eastern seaboard, LifestyleOne owns a gorgeous 2 bedroom, 2 bath apartment in the Turtle Bay neighborhood of Manhattan. With increased demand driving up the price of real estate, this particular property should quell any notions of a real estate bubble. If you are not already a part of the New York City luxury real estate market, the time to jump in is right now.

Learn more about investing in luxury real estate »

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Topics: Real Estate Investment, New York City, LifestyleOne