Country Guides Country Guide: New York

Date Published:

24/06/2008

New York rarely catches a cold when it comes to investment opportunities.

OK, so at the moment property prices have dipped a little (5-10 per cent against a national average decline of 25-35 per cent), but that only makes it even more attractive to investors.

Investment Potential: Capital Appreciation

What you’ve got, and will always have, in New York is demand over supply. The geographic area is small, while the population is large, and aspirational – in other words, most Americans want to own their own home, despite the wreckage that they see all around them in the current US housing market.

Arguably, New York has found its correct price level right now. But, rest assured, it will be one of the first markets to kick on.

Investment Potential: Rental Yield

GlobalPropertyGuide.com reports that yields in Upper Manhattan average 4.6 per cent. Gross rental income on apartments does not go beyond 5 per cent, except for units with 60 sq. m that generate a yield of 5.97 per cent – way higher than other apartment sizes. Lower Manhattan yields aren't good, either. In fact, they are even lower than in Upper Manhattan with an average of 4 per cent. Apartments with 60 sq m still earn more, at 5.05 per cent. Holiday lettings might be more profitable but there’s stiff competition. The Holiday Lettings website has more than 30 apartments to rent on its books with studios priced from £424 pw.