Four Trends the Experts Predict Manhattan Will See in 2012

Predicting four manhattan real estate trends for 2012Earlier this month we wrote about how the Real Deal asked a group of real estate experts how they thought the luxury Manhattan condo market would play out in 2012. AM New York has written a similar story that analyzes what various real insiders are banking on in the new year. Some of the predictions from the two articles overlap, but AM New York also found some interesting new ideas, that could be meaningful to New Yorkers looking for luxury condos in Manhattan. We’ve compiled an overview of what exactly the experts say you should look for in the real estate market in 2012.

Low interest rates, along with continued robust foreign investment, suggests that there will continue to be an abundance of new projects this year, particularly in quickly developing areas like Hudson Yards in Midtown West. Experts also suggest that New Yorkers consider buying condos now. Mortgage rates are still at historically low levels, and the extremely tight rental market means that rent prices are going up. In this light, buying is becoming a particularly attractive option, which brings us to the third prediction.

Developers are going to start offering special deals for condos currently under construction. Developers are always eager to fill their new buildings as quickly as possible. If they can report that a new building, like, say, the Abingdon in the West Village, or One57 in Midtown West, is filling up quickly, it makes the building more attractive to other buyers. So developers and realtors will do whatever they can to fill their new buildings. Prospective buyers might be able to look forward to classic incentives like turnkey ready condos.

Finally, experts predict that new Manhattan buildings will have fewer amenities than some New Yorkers may be used to. While the real estate market in Manhattan is doing extremely well, buyers are still wary of paying extra for amenities they may not need. Experts predict that developers of new buildings will build fewer things like gyms and lounges, and in turn charge overall less money for their condos.

As far as things go for the consumer, we recently compiled a list of all the projects set to open in Manhattan this year. Prospective buyers may want to consider checking out some of those places. There is considerable development occurring in the Far West Side, and apartments in Lincoln Square and parts of Tribeca, two up-and-coming Manhattan neighborhoods, should also be growing in number pretty soon.