Since the middle of 2014 the dollar has been on a meteoric rise against all major currencies, reaching highs not seen for over a decade.
Meanwhile the euro has been flailing around its lowest levels, losing value against the dollar with the same lightning speed.
This has proved to be an absolute bonus for European investors in Lower Manhattan who are increasingly disposing of their US assets to profit on currency fluctuations.
They would be out of their minds not to sell
Luxury real estate broker Richard Nassimi said: " Every day, two or three of my European investors are calling, asking if they should be putting their units on the market. I have about 20 exclusives on the market right now that are all owned by Europeans. They would be out of their minds not to sell ".
Daniel Hedaya of Platinum Properties has also recognised this new trend: " Even if these guys sold for exactly what they paid, they could still be getting 30% returns on their money because of the exchange rate. It’s pretty incredible, " he said.
The US dollar is currently at its strongest level in more than ten years against the declining euro and whereas European investors were buying in the US when the rate was around $1.60 per euro, that rate is now hovering at $1.13, presenting plenty of scope for profit-taking.
Prices in Lower Manhattan are also at historic highs with the average price for an apartment topping $1 million in Q4 2014 for the first time in the history of the Financial District.
Since 2013, the median price per square foot has increased 11% to $1,192 with the average discount off the asking price at 3.56%, representing a decline of almost 32% and indicating a reluctance to negotiate as aggressively.
Both the property price increases and the exchange rate favouring the dollar over the euro add impetus to the surge in profiteering, with opportunities to realise some pretty staggering returns for those Europeans already invested.
It is anticipated that many European investors leaving Lower Manhattan’s real estate market will be looking to profit further by timely re-investment in Eurozone property.
Source:: Property show rooms