Sunday, April 4, 2010

Manhattan Property Growth Factors

Manhattan property outperformed the stock market from 1997 to 2009, returning an average 10 percent per year compared to the Dow's 2%.  Here are the top Manhattan property growth factors for the coming 10 years as mentioned by the Property Wealth Report.

Wall Street
Each Wall Street job supports 5 other jobs.  Crain's New York reported that Wall Street made an astonishing $61 billion in 2009.  Jobs and bonuses are back.  New York remains the financial capital of the world.

New York University
New York University, the nation's largest private higher education institution, will be adding another 6 million square feet of space to it's existing 15 million square feet campus.  Higher education is the most vibrant growth sector promising to diversify the economy.  According to Crain's, last year higher education employed 90,000 people, excluding the contract workers that are typically excluded in these counts.  

Universities finance themselves - through rich parents who want the best for their children.   The growth of higher education diversifies the Manhattan economy.  It brings affluent students who spend at boutique coffee shops and high end retailers.  These factors fuel Manhattan's economic growth as well.

High Line residential area
The High Line residential zone in Chelsea/Meatpacking District is transforming the area into a chic, fashionable neighborhood.  One reason why The Caledonia is amongst the lowest inventory residential buildings in Manhattan.  The Standard Hotel, Morimoto, Chelsea Market and Gansevoort Hotel are just a few other mentions.

Separate from the three growth factors above but equally important is that businesses and investors can sue in New York!  Try doing this in other parts of the world, eg in the world's second largest economy.  The reasons above are summary growth factors and reasons why Manhattan property will continue to appreciate. 

Our website Castle Avenue Partners -  Manhattan Investment Property Agent

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