Key Luxury Markets around the Country including New York City are expected to benefit from boost in demand from Oversees Buyers
For key luxury markets around the country, especially New York, Foreign Buyers have been a key part of the Buyer pool. For the past nearly 3 years, this Buyer has been virtually absent from the New York Luxury Market.
The pandemic and associated travel restrictions prevented foreigners from physically coming to the United States. While some deals did occur virtually by foreign Buyers, that has been small compared to deal volume when travel bans were not in place.
We expect that dynamic to change and the foreign Buyer to return with strength now that the United States has lifted the travel ban on approximately 33 countries for fully vaccinated visitors. With the travel ban lifted, foreign buyers can once again enter the country and physically see and buy properties. We expect this to have a positive impact on the New York luxury market as many want to invest their dollars here.
For a luxury market that has continued to set records throughout 2021, we anticipate the return of the foreign buyer to be an additional boost of demand as we end 2021 and enter 2022.
This could add tens of billions of dollars in transactions to the market.According to the National Association of Realtors, foreign Buyers spent $267 Billion on American Real Estate in 2018 and in 2019 they spent $183 billion.
Wealthy Foreign Buyers are interested in high-end homes and New Construction
What We Expect from the Return of Foreign Buyers to the United States
New demand in key luxury markets across the country such as New York, Miami, and Los Angeles
New Construction will likely be the main beneficiary of this new demand as foreign Buyers prefer new product
Thanks to increased asset prices across both real estate and equity markets since prior to the pandemic, many foreign buyers have elevated wealth
The economic impact of travel resuming should be a positive for multiple sectors of the market - tourism, retail, and ultimately real estate.