Are Luxury Apartments Worth It?

Manhattan is currently a sellers’ market where potential buyers are said to exceed qualified housing stock.

Manhattan is currently a sellers’ market where potential buyers are said to exceed qualified housing stock. It may not be accurate to assume, however, that more NYC apartments are selling briskly. In fact, despite the still lagging economy, available housing is selling for higher prices due to low inventory. Those currently seeking to buy luxury apartments in New York City are finding that the median price for an apartment now approaches $1 million. Price and value are among the reasons high-net worth, yet value-conscious apartment buyers are considering new luxury apartment developments.

The first credo of urban real estate remains location. Therefore, the most desirable locations in the more trend-forward neighborhoods will already have structures on them. It is far more cost-effective for developers to acquire a site and to renovate it than to demolish the building and rebuild. Ground-up new builds require far more permits, inspections, materials, and labor, expanding the project timeline sometimes indefinitely.

Among the high-end renovations a standard appears to be emerging- the older the building, the more likely it is a cooperative apartment complex than a condominium group. Co-ops are generally more affordable than condos, however there are more owner restrictions, and even the cooperative luxury apartments in Manhattan do not appreciate in value nearly as well as more upscale apartments in condominium developments. According to Forbes, ten-year figures from 2005-2015 indicate that despite the real estate downturn, that condos in NYC appreciated by over 42%, whereas co-ops trailed, posting a 22% increase in value.

Finding the Best Luxury Apartments in New York City

If condos are currently the superior asset class, which luxury condo developments provide optimal value for spend? Also, what are high-income apartment seekers looking for from today’s upscale real estate developers? Across all economic groups, neighborhood is key. ‘Convenience’ defines luxury for single millennials and young couples want to walk to restaurants, bars, shopping, boutiques, art galleries, museums, music venues, fitness centers, and local attractions. Off street, covered parking is preferred; the newest trend is buildings that feature driveways and courtyards. Families want to be in established, family-friendly areas with a sense of community. These locations will have tree-lined streets and be close to schools, playgrounds, and parks. All demographics want easy access to transportation, subways, parking lots, and bus stops.

What Manhattan’s Luxury Apartment Buyers Want Now

Even in this strong sellers’ market, high net worth individuals are not just seeking a home, but also an asset. The residence must offer full services including a concierge, a 24-hour doorman, and, preferably, an on-site superintendent. Fitness centers, pools, and gathering spaces are all requirements for their maintenance-free urban lifestyle. Another recent trend normally reserved for buyers’ markets is the furnished luxury apartment, a convenience that streamlines the contract to occupancy timeline.

To summarize, new luxury apartment developments in New York City incorporate all the amenities and up-market features that asset-conscious home buyers are seeking. They know that higher floors are brighter and will offer commanding views, while open floorplans appear more spacious, therefore desirable. Bathrooms and bedrooms will be inspired by 5-star hotels, and kitchens will open onto entertaining spaces and feature the highest quality cabinetry, European appliances and finishes, including quartz and honed stone countertops. Ensuite laundry and in-unit utilities allowing personal control are musts as well. Inside and out, responsible developers will have maintained all the character of the original premises, while incorporating every luxury amenity that discriminating buyers require. The home buying process timeline for those seeking luxury apartments in Manhattan can be streamlined with time-saving perks such as fully-furnished units, every modern convenience, and considerable value-adds that support the upscale urban lifestyle.

Once the desired location has been selected and financing secured, even asset-class buyers can find it difficult to locate a building that ticks all the boxes. This is precisely the scenario where Roxann Real Estate professionals excel. Our agents deftly assist home buyers to navigate the extremely challenging NYC market to achieve their luxury apartment goals. We invite you to consult with our team regarding your upscale housing requirements regarding luxury apartments in Manhattan: (516) 754-3946.