We caught up with the team at Leslie J. Garfield & Co to hear their first-hand knowledge of how the new presidency is affecting the NYC real estate market…
After Trump’s first 100 days in office many are still unclear on what impact his presidency will ultimately have on foreign investments in the NYC Real Estate Market. Although some are hesitant to invest due to the president’s views on immigration and the ups and downs of his first months in office, overall the outlook for foreign investment in NYC Real Estate remains positive.
There are several reasons why foreigners will remain attracted to investments in the U.S. and particularly New York City, including the fact that America continues to outperform other countries with long-term investments, with New York being one of the top city’s for stable investments. A strong performance by the stock market, driven by Trump’s promises for significant tax-cuts should also increase investment in real assets.
Immediately after President Trump enacted his first travel ban we also saw what is believed to be an indication of a rush to invest in the US through the EB-5 program, an immigrant investor program which provides foreign investors the ability to obtain a green card in exchange for investing capital into new commercial businesses. This ban caused a spike in applications for the program. Until this point, the majority of the investors in this program were Chinese, but after the ban was enacted inquiries from countries across Europe, the Middle East and even Canada began coming in as many felt applying for permanent residency was something that needed to be done in the near future. This program has been mutually beneficial for property developers and investors due to the low interest rates EB-5 funding offers developers and the tangibility real estate projects offer investors.
While foreign investments may not comprise a large portion of townhouse sales, there are other areas of the NYC real estate market that rely heavily on foreign capital, affecting the conditions of the real estate market overall.
*Written by Caylyn Sullivan of Leslie J. Garfield & Co*