NYC – When it comes to the price of real estate in New York City, several million dollars can still be seen as a bargain. However, that notion is slowly beginning to change due to competition in other parts of the world. For the most part right now though, NYC is still much cheaper than several competing countries. Many companies and investors in Asian countries for example buy up real estate throughout the city every year, particularly in neighborhoods like Brooklyn.
Some countries are pricier than others are. For example, NYC seems like a bargain compared to places like Monaco. This city has one of the most expensive real estate markets in the entire world. The average property there comes out to costing $6,200 per square foot. That’s almost three times as much as the cost in Manhattan.
Other cities including Singapore and Hong Kong also have more expensive prices. Asian cities in particular though are beginning to lower their prices and soon could be more in line with Manhattan. New government regulations in those countries and the changing markets are causing prices to drop. While it may still be a few years, the competition is heating up around the world. Manhattan may one day no longer be cheaper than these expensive countries. Even if it is, the difference could be much less.
Whether this will have any effect on the market in Manhattan remains to be seen. In a few years’ time some investors and developers may be eyeing these other countries with falling prices. This may cause prices to fall in Manhattan, or they may remain stable. Either way, it would be wise to keep an eye on the prices in comparable cities around the world.