NYC Luxury Real Estate Blog

Real Estate Market Hot in Upper Manhattan

What was once the black sheep of Manhattan real estate, Upper Manhattan is now home to some of the hottest luxury apartments for sale. Traditionally encompassing the neighborhoods of Marble Hill, Inwood, Washington Heights, Harlem and part of the Upper West Side, Upper Manhattan contains some of the most historically rich and culturally preserved communities in New York City. New Yorkers who are searching for cheap rents and undiscovered entertainment hubs, like jazz lounges and lighthouses, have flocked to Upper Manhattan neighborhoods like Washington Heights and Harlem in recent years. For many young couples and artists, the quasi-suburban neighborhoods of Upper Manhattan have become a great alternative to buying in Midtown West and Midtown East.

The Lessons of Manhattan Real Estate History

Easy credit, rapid development, rising values, rising demand, resales aplenty: does this sound familiar? The Manhattan real estate boom of 2007 and 2008 for luxury sales exhibited all of these characteristics in spades, but this was nothing new for Manhattan. During the roaring 20’s, the exact same boom took place, although everyone knows how that scenario played out. The stock market collapsed, the real estate market followed suit, and property prices (when measured by square foot) declined for a decade. While the parallels are undeniable, very few people are willing to draw them, and for good reason - the real estate market depends heavily on consumer confidence. Nonetheless, the similarities between now and then far outweigh the differences.

NYC Approval Process Goes Digital

The approval process for new construction plans in Manhattan has always been a source of frustration for developers. Government red tape has made it notoriously slow; many projects have been delayed for months or years, and some die in the approval stage. Not only that, but more desirable neighborhoods like the West Village and SoHo have especially strict regulations. It’s no wonder approval took forever: The Department of Buildings and 6 other government agencies reviewed each plan, and the paperwork moved slowly from one agency to another. In order to expedite this process and create more business and jobs in Manhattan, Mayor Bloomberg announced the creation of the NYC Development Hub, a secure on-line website run by the DoB designed to accelerate the approval process for new construction. This change should have an immediate effect on condo development; under the new system, every agency can review the digitally submitted plans at the same time. Plus, representatives from those agencies will create their own mini-hubs to participate in video conferences with architects and engineers while reviewing their plans.

Manhattan Apartment Sales Return to Pre-Recession Heights

Despite the nervous stock market this summer, sales in the Manhattan real estate market are positively stable. While the fear of a relapse in the global economic crisis is still very much a reality in the minds of many potential buyers, the numbers indicate that Manhattan homebuyers are not deterred. The latest trend shows that many Manhattan buyers are now taking advantage of the current market situation and favoring three- to four-bedroom apartments instead of the traditional smaller units. Sales in luxury Manhattan apartments are at their highest point since 2008 and apartments on the Upper West Side are closing at an average of .

West End Historic District Set to Expand Dramatically

West End Avenue is home to some of the most regal buildings in all of Manhattan, and soon those buildings might be off limits to the real estate developers who are constantly looking to transform Manhattan with new construction. A few years ago, the West End Preservation Society submitted a proposal to the Landmarks Preservation Commission to expand the historic district on West End Avenue, thereby preserving a huge swath of the area. If approved, the proposed district will extend from West 70th Street all the way up to West 109th Street between Broadway and Riverside Avenues, a 2-mile stretch on the Upper West Side that encompasses 745 buildings in all. This change would eliminate new construction on West End Ave, although it would still allow developers to into condos. Nonetheless, in a neighborhood that attracts very affluent buyers and renters, it's safe to say that developers will not be happy about being forced to give up such a valuable part of Manhattan.

Manhattan Developers Relying on Condo Conversions

With a dearth of new construction, developers in Manhattan have shifted their tactics. 2011 has been the year of the condo conversion, and this wave of conversions seems likely to continue as long as . In lieu of working with banks to loan them the large amounts of money required for new condo construction, developers are electing to simply convert rental buildings or office spaces instead. So far the tactic is working, although this strategy is heavily dependent upon the continuation of a healthy New York real estate market. If global financial insecurity or the recent woes of Wall Street begin to turn the current seller’s market into a buyer’s market, these converted condos might prove to be unwise investments.

No Price Too High for High-End Apartments

The high-end luxury market is back. For the past 3 years, high-end real estate was something of a black sheep among an otherwise healthy real estate market in Manhattan, but no longer. After the recession sent high-end condo sales into a precipitous slide for 2 years, the market began to reassert itself last year, albeit slowly. Recently though, the luxury condo market is making up for lost time. According to a Wall Street Journal analysis of city property filings during the third quarter, sales of high-end apartments in Manhattan reached their highest level since mid-2008, the peak of the real-estate boom.

Riverside Center: Bringing Luxury Living Further North

As a result of the trendiness and subsequent building boom on the West Side of Manhattan, neighborhoods such as Chelsea, theMeatpacking District, Clinton, and Midtown West have more than their fair share of new construction and luxury development. At the same time, however, the Upper West Side is certainly gaining on its Hudson River-bounded neighbors to the south, in particular with Extell’s Riverside Center, the southernmost point of the Trump megaproject known as Riverside South, whose new construction will bring contemporary condominiums in New York City to a new level.

Condos Revisiting the Market Find Buyers

The New York City luxury condo market is generally recognized as its own real-estate niche. Certainly, national real-estate market forecasts have repercussions on NYC's real-estate beat--but they're limited. So don't write off the Manhattan luxury condo market to broadcasted waves of statistics just yet. Yes, according to The Wall Street Journal the national housing inventory crashed into rocky lows this year; but refocusing the real-estate market lens to apartments for sale in Manhattan, the city has seen units going up, and several buildings being re-launched after bitter 2010 presales, according to The New York Post. Manhattan is proving yet again to be the exception to the rule.

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