With both residential and office towers popping up like wildflowers all around the city, an annual report by The New York Building Congress predicts that the annual construction spending in the city is expected to reach a record high of $30.7 billion this year. This development has been hailed as good news for New York City’s real estate sector, as this is the first time that the city’s overall construction spending has exceeded $30 billion since 2008. This rise in spending has been credited to two main reasons: an increase in demand for luxury housing, as well as an increase in activity in both non-residential projects and government spending.
This increase in spending is yet another indication of how New York City’s economy is surging ahead after the slump of the recession. Residential construction, for instance, is expected to reach $3.2 billion this year, a significant rise from the $2.9 billion that was spent last year. The residential sector shows no sign of stopping its meteoric rise anytime soon either—The New York Building Congress report claims the sector will continue to put up some amazing figures in the coming years as well. The number to beat will be $6 billion—this was the peak achieved by New York City in residential construction spending in 2006 and 2007.
These numbers have yet again proved that now is a good time to invest in New York City real estate. With several impressive buildings on the horizon, the future seems extremely bright for the city. High profile sales in luxury real estate have become something of a norm, and the market is now especially good for those seeking to buy luxury real estate. On the other hand, non-residential projects in New York City have been doing very well too. The Real Deal reports that spending on the construction of offices, hotels, etc. is expected to reach an all-time high of $12.6 billion this year, which is, once again, a whopping increase from the $10.5 billion that was spent last year.