While most of our residential real estate conversations on this blog center on condominiums and co-ops, the market for homes is still a vastly important (and growing) area of real estate in New York City. And according to a real estate broker, the New York residential real estate market is still wildly successful, even if it hasn't been as strong as in years past.
Savills released its rankings for the best rental returns in the world recently, and New York finished second on the list behind Tokyo. In last year's version of the rankings, New York finished first. New York's "rental yield" (which is measured by comparing annual rental returns and the 10-year Treasury yield) is 3.6 percent according to Savills, well behind Tokyo's rating of 4.7 percent. The director of residential research at Savills had strong words for the New York market, saying that it "continues to appear a sound investment both for income and capital growth potential."
One of the more intriguing projections by Savills is that home values in the New York City area may increase by 30 percent over the next three years. That's hardly a guarantee, but it certainly shows that there is immense potential in the residential market here in the city.
Completing the purchase of a home or trying to sell your residential property can be a complex transaction. If you are worried about intricate factors that may impact the potential sale or acquisition of a piece of residential property, you should consult an experienced real estate attorney.
Source: Bloomberg, "Tokyo Is Top for Residential Property Returns as New York Drops," Neil Callanan, Sept. 12, 2013