NYC – In New York City, luxury condominiums are more popular than ever before. In fact so much so that developers are diving right in to new condo projects without coming up with a Plan B. This isn’t necessarily a bad thing, and instead speaks to the strength of the current market. In the past, developers would typically have a fallback plan that would turn any of their condos into rental properties. This way if they couldn’t find a buyer they could at least rent out the space and make money until the market changed. Not only are there plenty of buyers looking for luxury condos, but the idea of having to rent one out is becoming almost nonexistent.
When the market is more stable, developers have less of a problem taking risks. The real estate market of today looks nothing like it did just five years ago. No one was buying luxury condos and turning them into rental units seemed like the only viable option. Now things are reversing in a big way and
The cost of land is also rising; meaning buying up space to turn into a rental property isn’t as financially viable as it used to be. Developers are relying on buyers purchasing luxury condominiums to cover the costs. Even as a hotel, most condo projects would not be a success in today’s market. The price of land is just too high for anything but luxury condominiums.
The future looks bright for the luxury condominium market in New York City and elsewhere throughout the country. What was once seen as a dead market that was being turned into hotels and rentals is now alive and well. For the next few years it least it seems there are no signs of the market slowing down.