Luxury properties in the US continue to be the investment of choice for the global wealthy

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Donald Trump is truly a polarizing figure and the political turmoil in the US has driven some die hard patriots to seek residency elsewhere in the world. While those that leave the country or the focus of media, a recent real estate report solidifies the United States position as the premiere market place for luxury real estate. Affluent foreigners and new immigrants continue to pursue and acquire luxury class properties in key cities in America.

This latest analysis reveals continued upward momentum in cities like New York, Los Angeles and Miami, all key locales for jet setters and affluents alike.

“Politics aside, the United States still offers the best possible long term living solution for wealthy individuals who currently reside in less democratic or restricted nations. Infrastructure, services and capacity all play key roles in enhancing the lifestyle of affluent people, not to mention the weather in the southern centres.” – Doron Levy, TheTopTier Digital Media

Some key highlights of the report:

  • 72% increase in foreign investment in U.S. residential property priced over $1m (£770,000)
  • £5.78 billion ($7.48bn) new high for foreign investment into the U.S. luxury residential real estate market, over $1m (£770,000)
  • 44% of these foreign purchases were all-cash based transactions.
  • Almost 40% of all overseas buyer transactions are made in three key U.S. Locations, Miami, New York, Los Angeles: Miami/Florida (26%), Los Angeles/California (9%) and Manhattan (3%)
  • 50% of overseas investment into U.S. residential real estate originates from: Canada, the UK, China, Mexico and India
  • Top Three factors for location choice: Life Style, Security and Safe Haven For Capital
  • Miami: 80% of buyers and occupiers of ultra prime property are international, paying an average $ per sqft price for luxury residential property of $2,749 (£2,121) and typically buying a 13,107 sq ft luxury residence
  • Miami: most popular addresses being Miami Beach, Palm Beach and North Bay Road. Island locations such as Fisher Island and Bay Point are popular with overseas buyers because of the privacy and security they provide the report adds.
  • Miami: Gated or secure homes on the waterfront are the most sought after ultra—prime homes, with trends leading towards towers, such as Missoni Baia developed by real estate magnate Vladislav Doronin with his Miami-based firm, OKO Group
  • Manhattan: 80% of buyers and occupiers of ultra prime property are international, paying an average of $3,618 (£2,786) per sq.ft and typically purchasing a 9,509 sq.ft property
  • Manhattan: Family townhouses to use as a New York home or a large lateral duplex or penthouse providing a pied-à-terre  are the most popular
  • Manhattan: Top locations for overseas buyers are Upper East Side, Greenwich Village and Tribeca. The most sought after ultra-prime homes for the ultra wealthy are large six bedroom townhouses that typically provide 4,276 sq ft of outside space and are within the vicinity of Central Park
  • Manhattan: Prices for premium homes have risen by close to 30% since 2010 and over 3.5% in 2016
  • Los Angeles: 20% of buyers and occupiers of ultra prime property are international, paying an average of $2,901 (£2,234) per sq.ft typically buying an 11,211 sq.ft mansion or large house in Beverly Hills, Hollywood Hills West, Pacific Coast Highway or Malibu.
  • Los Angeles: The typical ultra-luxury Los Angeles property provides six bedrooms, has a separate staff wing and is set in 2.55 acres of private gardens.
  • Los Angeles: Key overseas buyer groups are from the Middle East (Saudi Arabia, Qatar and Israel), China, the UK, France and Italy.

For more details, please read the official press release from Lawrie Cornish:

FOREIGN INVESTMENT INTO U.S. RESIDENTIAL PROPERTY HITS NEW HIGH WITH NEW YORK, MIAMI & LOS ANGELES AS THE KEY LOCATIONS SAYS NEW REPORT

Foreign investment into the United States (U.S.) luxury residential real estate market has jumped to a new £5.78 billion ($7.48bn) high with Miami, Manhattan and Los Angeles as the key locations, says a new report by Beauchamp Estates, in association with Leslie J Garfield & Co.

Entitled U.S. Ultra Prime Real Estate the new report focuses on Manhattan, Los Angeles and Miami with analysis by Dataloft, the market intelligence group. The report uses local market intelligence provided by Manhattan headquartered Leslie J Garfield & Co and California based Trulia, with  overseas enquiries/deals for the U.S. from London based Beauchamp Estates. The report findings are supported by data from WealthX and the U.S. National Association of Realtors.

In the 12 months to March 2017 non-resident foreign sales in the U.S. for property priced over $1 million (£770,000) hit £5.78 billion ($7.48 billion), up 72% from 2016. Of these transactions 44% were all-cash purchases. (U.S National Association of Realtors).

The new report reveals that for premium residential real estate priced above £2,000 ($2,700) per sq.ft the key locations in the U.S. for foreign buyers are Miami, New York and Los Angeles.

Gary Hersham, Managing Director at Beauchamp Estates says: “Despite the vast geographical size of the United States, data from the NAR shows that almost 40% of overseas buyer transactions are made in just three U.S. locations – Miami/Florida (26%), Los Angeles/California (9%) and Manhattan (3%) – and for ultra-prime property these three locations are the U.S. destinations of choice for the world’s wealthy.”

Jed Garfield President at Leslie J Garfield & Co says: “Data from the NAR shows that just five overseas countries dominate investment into U.S. residential real estate, accounting for 50% of all transactions, they are  Canada, the UK, China, Mexico and India.”

The new report reveals that the Miami property market is dominated (80%) by international buyers and occupiers, with just 20% of the market being attributed to domestic U.S. buyers. The average $ per sqft price for luxury Miami residential property is now $2,749 (£2,121) with overseas buyers typically buying a 13,107 sqft luxury residence with the most popular addresses being Miami Beach, Palm Beach and North Bay Road. Island locations such as Fisher Island and Bay Point are popular with overseas buyers because of the privacy and security they provide  the report adds.

The report highlights that the most sought after ultra—prime homes in Miami are either gated or secure developments on the waterfront. With trends leading towards towers, such as Missoni Baia developed by real estate magnate Vladislav Doronin with his Miami-based firm, OKO Group, or private villas providing up to 6 bedrooms set on 0.83 acres of land, complete with a yacht mooring.

The key sources of overseas demand for luxury Miami real estate are from South American and Continental European buyers led by investors from Venezuela, Brazil and Columbia for the former and purchasers from France, Italy and Belgium for the latter.

Gary Hersham, Managing Director at Beauchamp Estates says: “Miami is a leading hub for overseas buyers investing in U.S. luxury real estate. Alongside the beach, restaurants/bars, leisure facilities and all year good weather, the City has become a leading financial and tech business hub. Around 95% of ultra-prime real estate in Miami purchased is done via cash transactions. Miami is extremely popular with high-net-worth buyers from South America – Colombians, Brazilians and Argentinians – with other key overseas buyers being the British and investors from the Philippines.”

The report says that Manhattan is the next key hub for overseas purchasers buying U.S. luxury residential real estate. For luxury Manhattan property, 27% of buyers are from overseas, whilst 63% are domestic. The overseas buyers are truly international with key groups being Chinese, British, French and German buyers.

Overseas buyers of luxury property in Manhattan will now pay an average of $3,618 (£2,786) per sq.ft and typically purchase a 9,509 sq.ft property – either a family townhouse to use as a New York home or a large lateral duplex or penthouse providing a pied-a-terre and also a base for children studying in Manhattan.

The top locations for overseas buyers in Manhattan are Upper East Side, Greenwich Village and Tribeca. The report reveals that the most sought after ultra-prime homes for the very wealthy are large six bedroom townhouses that typically provide 4,276 sqft of outside space and are within the vicinity of Central Park.

Jed GarfieldPresident at Leslie J Garfield & Co comments: “Manhattan is a premier world-city and attracts overseas buyers from around the world. Over the last five years there has been significant investment in the Manhattan luxury real estate market from Asia, Europe and Canada. Prices for premium Manhattan homes have risen by close to 30% since 2010 with price growth of over 3.5% in 2016.”

The report reveals that Los Angeles is the third most popular U.S. destination for overseas buyers with 20% of the housing market now comprising overseas households, with the balance consisting of domestic residents.

Overseas buyers of luxury property in Los Angeles now pay an average of $2,901 (£2,234) per sq.ft buying an 11,211 sq.ft mansion or large house in Beverly Hills, Hollywood Hills West, Pacific Coast Highway or Malibu. The typical ultra-luxury Los Angeles property provides six bedrooms, has a separate staff wing and is set in 2.55 acres of private gardens. Key overseas buyer groups in Los Angeles are from the Middle East (Saudi Arabia, Qatar and Israel), China, the UK, France and Italy.

Gary Hersham Managing Director at Beauchamp Estates says: “In Los Angeles wealthy overseas buyers tend to purchase in gated communities and prefer mansions or family houses located on large plots. Our clients from Britain, France and Israel who make enquiries about Los Angeles tend to work in the film industry, the media, finance or tech sectors and their Los Angeles property serves as both a holiday home, business base and investment.”

The report highlights that up until 2026 an additional 22,000 ultra high-net-worth individuals are forecast to buy premium property in the United States and reside there either full or part time. By 2026 the ultra high-net-worth population of Miami is set to grow by 40% (up to 1,050 more wealthy households), Manhattan and Los Angeles are forecast to see wealthy household numbers rise by 30% with up to 8,541 and 4,095 new wealthy households respectively establishing in the cities.

By Doron Levy Courtesy TheTopTier Digital Media / Lawrie Cornish

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