(MENAFN- Knight Frank Middle East ) 7th December 2021 | Dubai, UAE – The urban exodus experienced at the start of the Covid-19 pandemic is visibly in reverse in New York City, with key real estate market indicators suggesting a recovery is underway, according to Knight Frank. The number of Manhattan properties, which saw contracts signed in October 2021, has risen by more than 43% to 1,203 compared to the same month in 2020. In addition, since reaching their pandemic peak in August 2020 new listings have declined, confirming the extent to which the market is gaining traction and stock is being absorbed.
Prices at the prime end of the market have been falling for nearly four years, but a return to growth is being witnessed, with expectations that annual price growth will reach 5% in 2022, this would represent Manhattan’s highest rate of growth in seven years.
Georgina Atkinson, Associate Partner at Knight Frank said: “Recent sales volumes in Manhattan provide evidence of the uptick in demand. The relaxation of international travel restrictions should support the market too, with vaccinated overseas buyers once again able to explore the city and view properties in person for the first time in 20 months.”
New York presents an attractive buying opportunity with low purchase costs and fewer restrictions for foreign buyers. In addition, there is good news for investors as prime rents and new leases are accelerating rapidly. According to Douglas Elliman and Miller Samuel, apartment rents increased the most on record in October 2021, driven in part by the return of international students as well as corporate tenants, as companies increasingly call their workers back to the office.
The rollout of Covid-19 boosters to all US adults should benefit the city’s economy at a time when nationwide growth looks set to outstrip international peers. The International Monetary Fund is predicting 5.9% GDP growth in the US for 2022, higher than all other world regions apart from Asia.
Eyes are on Midtown, home to iconic New York sites. With Park Avenue at its heart, the neighbourhood is home to some of the city’s most appealing properties, including The Towers of the Waldorf Astoria. The third quarter of 2021 saw the most sales recorded at all price points in Manhattan, with Midtown significantly contributing towards this. Pent-up demand, rising investor confidence and persistently low interest rates are likely to continue to fuel the market here, with luxury properties expected to be most sought-after.
“With many overseas buyers unable to travel to the United States since the onset of the pandemic, domestic buyers have been the primary purchasers of New York real estate in the past 18 months. However, what we are now starting to see is the return of international buyers specifically and an uptick in direct enquiries from clients based in the UAE looking to purchase in New York, more specifically in prime Midtown,” said Georgina Atkinson, Associate Partner at Knight Frank.
“This has been particularly apparent for The Towers of the Waldorf Astoria, located on Park Avenue. Buyers are choosing to purchase here for several reasons, including the building’s iconic address, its full-service lifestyle offering and unsurpassed level of amenities.” Atkinson added.
High-net-worth individuals, including those from the Middle East, have shown increased interest in proven hospitality brands for their residential purchases over the last few years. Recent Knight Frank data highlights that branded residences can attain a premium of 25 – 35% ahead of comparable non-branded schemes and more than one in three buyers would be willing to pay this premium.
Dan Tubb, Senior Director of Sales at The Towers of the Waldorf Astoria, said: “The Waldorf Astoria is one of the world’s most coveted luxury brands and the original hotel on Park Avenue is truly a one-of-a-kind, iconic property, unable to be replicated.”
Waldorf Astoria New York is now offering the opportunity to purchase one of 375 contemporary residences in The Towers above the legendary hotel.
“To date, we have received over 8,000 inquiries from all over the world, coast to coast in the US, and right here in Manhattan; so many of whom have a personal connection to the Waldorf Astoria New York hotel or were longtime residents of The Towers.
We have buyers purchasing for all different reasons—both primary and pied-à-terre—and that’s how you know you’ve done something right. Our buyers will be coming home to a lifestyle that’s very elevated, and the Waldorf Astoria name and reputation has been a major factor in that decision. People see it as a true destination hotel; it has an aura that no other place in New York City has,” added Tubb.
The Waldorf Astoria has been a beacon of timeless glamour and luxury for nearly a century—home to Hollywood’s elite, host to countless world leaders, and the site of cultural events and galas that hold a special place in the hearts of New Yorkers and visitors from around the world. When the Waldorf Astoria opened on Park Avenue to rapturous reviews in 1931, it was the largest and tallest hotel globally and is currently New York City’s largest privately-owned landmark. The property is in the midst of an unprecedented restoration, undertaken with care by developer Dajia Insurance Group and renowned architects Skidmore, Owings & Merrill, with great attention given to the original Art Deco design. This talented team has invested years of work in understanding the building’s history and maintaining its heritage for future generations while bringing it into a new age. The entire city block property, which includes 375 condominium residences atop the 375-key Waldorf Astoria New York hotel, will welcome residents and guests in 2023.
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