Are you interested in buying a NYC property in 2021? Investing in real estate is always a good long-term decision since real estate has historically appreciated steadily over the years, no matter what the economy is experiencing. The New York City real estate market hasn’t been as competitive as other areas during the pandemic due to people leaving metro areas to buy in suburbs where homes are less expensive. However, it’s still a great place to buy—and it will likely get even better as former city dwellers start tricking back in when they are no longer able to exclusively work from home.
If purchasing a NYC property is on your radar in the near future, here are seven neighborhoods you should look into.
Tribeca is an excellent place to buy luxury properties. Not only are prime downtown neighborhoods now in demand, but they’ve also suffered from overdevelopment in the past few years. This has created a buyer’s market in which prices are lower, and supply is abundant. Tribeca is especially popular because it is centrally located, and there is an abundance of entertainment options nearby. This neighborhood is pivotal to New York’s artistic renaissance, and you can find trendy warehouses that have been converted into loft apartments. As New Yorkers begin to return to the city post-pandemic, Tribeca will become a highly coveted neighborhood. It will pay to buy now before prices start to rise.
2. Boerum Hill
Buying in Brooklyn can often get investors a better value compared to purchasing in Manhattan, especially since carrying costs in Brooklyn tend to be cheaper. Brooklyn is made up of several different neighborhoods, including Park Slope, Red Hook, Brooklyn Heights, and Boerum Hill. Buying a property in Boerum Hill is one of the best real estate investments you can make this year. Its beautiful tree-lined neighborhoods are home to historic 19th-century townhouses, brownstones, and new developments with contemporary condos. This is a quieter neighborhood with fewer crowds and is ideal for those who want to avoid the hustle and bustle of Manhattan. The rental market is also busy in Boerum Hill. A two-bedroom condo sells for an average of $1.5 million and easily rents for around $5,500 a month. To compare, the same type of Manhattan property would cost double that amount and only rent for around $8500.
3. Upper West Side
Now is the perfect time to set your sights on the Upper West Side because there are fewer buyers in the market and plenty of inventory to choose from. Getting a good deal in this neighborhood has not always been easy, but there are deals to be had before Manhattanites return to the city and start buying up properties again. The Upper West Side has a strong sense of community that is appealing to many buyers and a residential feel and charm that is attractive to both buyers and renters. It’s also close to Central Park and Riverside Park and has tons of fun, casual bars, and world-class restaurants. It’s also home to The American Museum of Natural History and Lincoln Center.
Like Tribeca, SoHo is a tried-and-true neighborhood that will always feature hot properties that will be popular with buyers as they flood back to the city. When you buy now, you can expect to easily rent out your SoHo property or sell it in the near future as the market roars back into life. What’s so attractive about this neighborhood? There’s high-end shopping, various independent coffee shops, and plenty of galleries to spend time browsing. You’ll also love the 19th-century architecture, a throwback to the neighborhood's manufacturing district roots. Buildings feature high ceilings, huge windows, and plenty of incredible industrial details.
Greenpoint, often called “Little Poland,” is another Brooklyn neighborhood that is promising for investors. Investors are already starting to buy up Greenpoint lofts, abandoned warehouses, and brownstones to flip, so now is the time to get into the game. The bohemian spirit in Greenpoint is strong, and there are plenty of galleries, trendy bars, and fashionable boutiques to attract high-end renters and buyers. The peaceful feel of Greenpoint is popular with families, and the lively Transmitter Park and views of the Manhattan skyline attract those who want the feel of the metro with the lower-key lifestyle of a suburb.
6. Financial District
Inevitably, at least some of the city’s employees will soon return to their offices either part or full time. Real estate experts are banking on them being skittish about taking public transportation and relocating to areas like the Financial District, where they can be close to their offices. Both Google and Disney are opening offices downtown, and properties in these areas will soon be in high demand. In addition to being close to many large companies and offices, the Financial District is also home to some quiet, fantastic museums, plenty of bars and restaurants on the city’s oldest street, and the ever-popular South Street Seaport.
Dumbo—an acronym for the community’s location Down Under the Manhattan Bridge Overpass—is home to trendsetting eateries, cobblestone walkways, and skyline views that you won’t find anywhere else in the city. Because this enclave used to be primarily commercial, you’ll find an abundance of charming lofts and renovated warehouses that are ripe for the picking. Investing in this community could mean a little hands-on TLC to create the Brooklyn hideaway of your dreams, but as one of Brooklyn’s most expensive neighborhoods, buying here can be key for long-term return on investment.
Buying a property in NYC is almost always a good play for real estate investors. Today, they are in a unique situation of purchasing a property at a discount due to the pandemic. As the pandemic eases and workers begin returning to the metro, both rentals and NYC properties for sale will surge in popularity and attract more buyers. The decline of London and Hong Kong make NYC the last Mega City and thus makes it attractive to investors. If you’re ready to start looking at investment properties or a primary residence, reach out to an experienced real estate agent like Kobi Lahav to help you with your transaction.