NYC Real Estate

New York City Luxury Real Estate Expected To Thrive In 2021

Based on New York City real estate’s last quarter of 2020, the luxury sector of the market is expecting to thrive in 2021. Sales of homes that cost more than $4 million increased slightly when compared to how they were selling this time in 2019; a surprising shift in the market considering we’re currently in the worst phase of the Covid-19 pandemic yet. 

Donna Olshan is the president of luxury real estate broker Olshan Realty who claims this increase is partially due to “a demand that was never met because we lost the most important real estate quarter to the pandemic – the spring. The upward tick also occurred because most of these sales are [to] New Yorkers, or from the New York metro area, betting on the home team. They are getting Covid-19 discounts, they’re looking at the long-term prospects of New York, and they’re buying.”

Jonathan Miller is the president and chief executive officer of Miller Samuel appraisers who thinks that NYC will see a major uptick in sales in 2021 because while many made the move to the suburbs during the pandemic, that craze will soon be over as the world begins to reopen. 

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“The way I think of the suburbs is that they had their moment. The ‘fleeing the city’ narrative is already extremely dated. While suburban sales are still up year over year, it’s just no longer a rocket ship of growth.” Miller also believes that this over-saturation of individuals in these suburbs are going to drive those markets way up, along with the prices of property. “And the jump in pricing, largely caused by what I would call panic buying—where people left the city out of fear—that was front end-loaded, and I don’t see a compelling reason why that [price growth] can be sustainable.”

Olshan believes that Brooklyn in general will stay as hot on the market as it has been; the pandemic hasn’t really impacted the real estate in the borough. “Luxury” real estate in Brooklyn is also much “cheaper” when compared to what’s considered luxury on the Upper East Side. Any home over $2 million in Brooklyn is considered luxury, which according to Miller is the main reason the area is so popular. 

“Brooklyn is certainly accelerating, and I don’t see any reason for that to stop I mean a million dollars buys you more space, and once you get into that luxury sector, that value grows quite a bit.”

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Foreign buyers investing in luxury New York City properties throughout the pandemic have certainly helped keep the industry, and economy, afloat, however, this has also caused the pricing to increase exponentially, and considering we’re in the middle of one of the worst economic disasters in US history, less American investors are likely to purchase these properties. 

In Manhattan this will especially be an issue considering how large the luxury condominium market is now in the borough, which Miller describes as being “burdened with a tremendous amount of supply.” 

“In 2020 we had 8.7 years of sellout, meaning it would take 8.7 years to sell all unsold Manhattan new-development condos. That is likely to drop to 7.2 years in 2021, because there’s an anticipated decline of new products coming into the market. Plus, additional sales will occur as buyers are drawn by discounted pricing. I think in 2021 we’ll see a continued drop in price trends.”

The next few months will be determined by how well the economy is able to recover with the new Covdi-19 economic relief packages, as well as how the country begins to recover with the rollout of two vaccines. 

Art in Home

Art Is The Newest Luxury Real Estate Trend

Real estate trends change every year. As our world continues to modernize and our culture continues to advance, we notice the spaces that we find on the market are doing the same. Luxury real estate is an industry that constantly needs to be up to par with what’s considered new and exciting in the eyes of society. 

So for 2020, what’s the trend? What’s keeping luxury clients engaged and ready to invest in future properties? For Miami, the answer is art. Miami has become a major hub for artwork and culture within the past few years — after all, they already are known for their annual Art Basel festival, which is one of the most attended and prestigious art fairs in the United States.  

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2000 Ocean is one of Miami’s newest and most talked about luxury real estate developments to come out of 2019. The luxury high rise apartments are priced anywhere between $2 million to $9 million and were developed by KAR properties, one of the most notable real estate firms in the US today. Shahab Karmely is the CEO of KAR, and recently discussed 2000 Ocean and KAR’s new art curator program that they plan on implementing into their luxury properties in the new year. 

“It [the art curating program] is part of our lifestyle services offerings. Art is part of mainstream culture today and Miami is at the center. Today incorporating lifestyle factors including professionally managed art programs are necessities if you want to be in the true luxury sector,” Karmely explained

Art has often been a symbol of sophistication and culture. The simplest piece can be representational of any worldly issue or personal journey; it’s completely subjective, which is the beauty of it. Every person can interpret a piece differently, and inviting that energy into the home, one of open conversation and understanding over the creative process, is exactly what’s on trend right now. 

In a time full of disagreement and argument, politically, our world has grown to be a battle, a constant back and forth in terms of opinions. As such, adding something like art into the home that can promote a positive difference of opinions is what real estate developers want to accomplish. 

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For 2000 Ocean specifically, Art Curator Megan Kincaid is leading the effort for the new luxury apartment properties. According to Karmely, Kincaid was hired as an expert who can offer education to clients and provide them with an understanding of what it is to have beautiful art in these luxury properties. 

“[Kincaid] will organize exhibitions of modern and contemporary art for residents, curate rotating shows, lectures, and art-inspired events. Personal art exhibition outings around Miami are offered. The program is meant to enhance living through art in your home and Miami. To enjoy art, you need knowledge and appreciation. We will overcome that by educating homebuyers who may have felt art was not for them,” Karmely said. 

When it comes to “staging” a luxury property, showing it with an art piece as the focus of a particular space in that property is a marketing strategy that’s been used for years. Staging in general shows clients what a home could look like if they were to move in. When it comes to luxury properties, the goal is to not only give the space a “home-y” feel, but also an extravagant one. Art tends to always make a space feel more luxurious, as it’s mainly found in museums or in the homes of the extremely wealthy depending on the piece, so when it becomes the focal point of a room, it gives off that same effect. 

Miami is kickstarting one of 2020’s first of many real estate trends. It will be interesting to see how art in the home develops and expands throughout every tier of real estate and how the market reacts. For now, only time will tell. 

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