Why is the New York real estate crashing?
It is often said that America is such a strong power that it influences other nations of the world. The serious economic crisis, which has affected the entire globe, started right here.
Similarly, even with regard to the real estate market, there have been substantial changes. This time, however, the effect was decidedly contrary. Well yes. It was not the American continent that generated a domino effect towards Europe, but London!
To better understand how this situation has evolved and how it is still evolving, it is necessary to take a step back, analyzing the general economic and financial situation.
Every major world power is divided as follows: elite and local properties. This macro subdivision allows us to give a first but important picture of the real estate sector.
In fact, being the two main categories of customers, it will not be difficult to understand how there are two different approaches to the purchase of a property, which therefore belongs to the luxory segment or to the standard one.
What happened in London was really a strong leveling of both segments.
Because of the much feared and many hoped for Brexit, it was no longer possible to identify a well-defined channel towards which to strive to encourage investors to buy. The crisis has affected both the less well-off but also the more affluent.
The average price of a property in central London has actually fallen by 1.5%, to reach –8 percentage points in the last month. To try to stabilize prices, it is obviously necessary to move the volumes faster and more immediately. Which is why sales in recent months have increased by 2%.
Despite the uncertainty thus caused by the Brexit phenomenon, it seems that the solution to this circumstance has been found.
However, as we have previously stated, Brexit also involved the Big Apple, New York, considering that many London investors came from here.
Noting the situation so advantageous, in terms of prices, there have been many who have decided to invest in such an uncertain market but at the same time able to allow buyers a profitable economic return even in the long run.
All this has definitely weakened the New York market, which even feels the weight of seasonality. So when is it worth investing in New York brick?
According to the experts, as soon as favorable situations arise, as there are no reliable forecasts able to comply with the reality of the facts.
What can we say, we hope that this stalemate can still take shape as soon as possible. We at Realigro therefore, as always, we invite you to stay up to date on our portal, in order to have an eye on all the latest information and news on the world real estate market!
Similarly, even with regard to the real estate market, there have been substantial changes. This time, however, the effect was decidedly contrary. Well yes. It was not the American continent that generated a domino effect towards Europe, but London!
To better understand how this situation has evolved and how it is still evolving, it is necessary to take a step back, analyzing the general economic and financial situation.
Every major world power is divided as follows: elite and local properties. This macro subdivision allows us to give a first but important picture of the real estate sector.
In fact, being the two main categories of customers, it will not be difficult to understand how there are two different approaches to the purchase of a property, which therefore belongs to the luxory segment or to the standard one.
What happened in London was really a strong leveling of both segments.
Because of the much feared and many hoped for Brexit, it was no longer possible to identify a well-defined channel towards which to strive to encourage investors to buy. The crisis has affected both the less well-off but also the more affluent.
The average price of a property in central London has actually fallen by 1.5%, to reach –8 percentage points in the last month. To try to stabilize prices, it is obviously necessary to move the volumes faster and more immediately. Which is why sales in recent months have increased by 2%.
Despite the uncertainty thus caused by the Brexit phenomenon, it seems that the solution to this circumstance has been found.
However, as we have previously stated, Brexit also involved the Big Apple, New York, considering that many London investors came from here.
Noting the situation so advantageous, in terms of prices, there have been many who have decided to invest in such an uncertain market but at the same time able to allow buyers a profitable economic return even in the long run.
All this has definitely weakened the New York market, which even feels the weight of seasonality. So when is it worth investing in New York brick?
According to the experts, as soon as favorable situations arise, as there are no reliable forecasts able to comply with the reality of the facts.
What can we say, we hope that this stalemate can still take shape as soon as possible. We at Realigro therefore, as always, we invite you to stay up to date on our portal, in order to have an eye on all the latest information and news on the world real estate market!
