Will the Brexit Vote Drive Up NYC Real Estate?

Posted On Fri, June 24, 2016 By

Posted On Fri, June 24, 2016 By In real estate trends

The vote by Britain to leave the European Union has shocked and confused the world to say the least. In addition to the political ramifications (Prime Minister David Cameron announced he will step down in October), the financial outcomes are staggering. The pound has already plummeted to its lowest level since 1985, with investors turning to the dollar and the yen and the entire European stock market dropping, according to reports from the Times. Though the Bank of England has earmarked roughly $344 million for potential stability measures, the world seems unsure of how the Brexit decision will affect international markets long term.

London is currently one of the top locations for foreign real estate investment, but in the face of an uncertain future, Crain’s presents the assertion that the vote could drive up real estate in New York City as “investors look for safe havens against the threat of a global recession.”

Morris Davis, a professor of finance and economics at Rutgers Business School, told Crain’s, “If Britain leaves the European Union, the future of the EU is in doubt. A heightened sense of risk and volatility drives up the price of any asset that’s viewed as safe.” He also explained that both residential and commercial real estate in New York, along with treasury bonds, are considered stable investments. This holds especially true as the value of the dollar is expected to rise sharply (the IMF estimates by 10 to 20 percent) in the wake of the shaky pound and euro.

Additionally, there’s England’s recently imposed capital gains tax on foreign investors and new visa requirements. Manhattan-based international real estate attorney Ed Mermelstein told Brick Underground that “what we’re seeing in last six to eight months is an influx of investors who’d been looking to do business or invest in London coming to New York—both luxury buyers and institutional-sized investors.”
RELATED:

Tags : ,

MOST RECENT ARTICLES

  • $12,000/month to rent this triplex townhouse beauty in Boerum Hill

    $12,000/month to rent this triplex townhouse beauty in Boerum Hill

    Renters can enjoy Brooklyn townhouse living in all its glory here at 306 State Street, a Boerum Hill property now ...
  • Millennial home buyers prefer DIY over going into debt over renovations

    Millennial home buyers prefer DIY over going into debt over renovations

    Millennial homeowners—yes, they do exist—are a careful lot, according to Better Homes & Gardens’ ninth annual survey of trends in ...
  • Have your apartment photographed by 6sqft!

    Have your apartment photographed by 6sqft!

    Did you spend months decorating your apartment? Is your home historic or quirky? If you live in a unique or ...
  • Express N train tunnel will close for a year in Brooklyn; Map shows the CO2 savings of CitiBike

    Express N train tunnel will close for a year in Brooklyn; Map shows the CO2 savings of CitiBike

    The express N train tunnel between the 36th and 59th street stations in Brooklyn will close for a year for repairs ...
  • The first presidential inauguration was held in New York City in 1789

    The first presidential inauguration was held in New York City in 1789

    As Washington, D.C. attempts to rein in the crowds on this Inauguration Day, New Yorkers can be thankful someone else ...
  • FREE RENT: A roundup of NYC’s latest rental concessions

    FREE RENT: A roundup of NYC’s latest rental concessions

    Midtown Rental Skyscraper ‘Tower 31‘ Offering One Month Free or One Month OP on Select Leases [link] Leasing Launches at ...
  • VIDEO: Watch the MTA clean subway tracks with their new Mobile Vacs

    VIDEO: Watch the MTA clean subway tracks with their new Mobile Vacs

    This past May the MTA recorded 50,436 subway delays, 697 of which were caused by track fires that could have ...
  • The Urban Lens: Inside ‘Little Odessa,’ Brighton Beach’s quaint beachfront Russian community

    The Urban Lens: Inside ‘Little Odessa,’ Brighton Beach’s quaint beachfront Russian community

    6sqft’s ongoing series The Urban Lens invites photographers to share work exploring a theme or a place within New York City. ...
  • Whole Foods will open a lower-priced ‘365’ store in Downtown Brooklyn

    Whole Foods will open a lower-priced ‘365’ store in Downtown Brooklyn

    Downtown Brooklyn is quickly becoming one of NYC’s most desirable commercial hubs. On top of hosting a lengthy roster of big ...
  • MTA backs plan to raise subway and bus fare to $3 come March

    MTA backs plan to raise subway and bus fare to $3 come March

    At a board meeting over the summer, the MTA began discussions about increasing subway and bus fare to $3 by ...
  • ‘Desperately Seeking Susan’ screenwriter lists Chelsea townhouse with a private yoga studio for $7.1M

    ‘Desperately Seeking Susan’ screenwriter lists Chelsea townhouse with a private yoga studio for $7.1M

    Built in the 1830s when this quiet, tree-lined residential block was home to well-to-do families, the four-story, 3,600 square-foot Greek Revival townhouse at ...
  • Pop singer Santigold lists her ornate Bed-Stuy brownstone for $1.95 million

    Pop singer Santigold lists her ornate Bed-Stuy brownstone for $1.95 million

    Singer and songwriter Santi “Santigold” White—best known for her singles “Creator” and “LES Artistes,” and more recently her video “Can’t Get ...

SIGN UP FOR OUR NEWSLETTERS

Thank you, your sign-up request was successful!
This email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.