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Uptown, downtown, all around the town ... real estate's moving.

These are truly dynamic times for the real estate industry in Manhattan. I credit the intensity of the Manhattan market to several different factors: Favorable and steady interest rates; an ongoing regeneration of New York City combined with a feeling of excitement and energy which permeates the City; a tremendous upsurge in tourism; and a continuing influx of suburban dwellers returning to Manhattan.

Prudential MLBKaye International Realty was the first major national residential affiliate in Manhattan. As a result of that affiliation, Prudential MLBKaye International Realty has a network of over 40,000 sales associates, with referral and relocation capabilities to bring national and international markets together. Resources include relocation services for more than 400 major U.S. corporations, which total nearly 100,000 transactions annually. Prudential's national data base provides market information in over 5,000 markets, permitting Prudential MLBKaye International the ability to pinpoint residential prices and list amenities provided in this enormous marketplace.

As we go into mid-year, prices continue to rise. Several factors unique to the New York Market contribute to this rise. The international marketplace in New York has changed tremendously. Unsettled political situations abroad have led increasing numbers of affluent foreigners to seek the security of the second home in the United States. Large numbers of these people, of course, prefer the special cachet and cosmopolitan environment unique to New York City. Hong Kong, the Middle East, the former Soviet Union and Latin America are specific examples.

Manhattan is the leader in foreign tourism in The United States and has become a resort market for foreigners who come here on vacation. Sales in the Manhattan condo market are 75 percent foreigners, and 20 percent in the co-op market. Twenty-five years ago, very few foreigners had homes in Manhattan. Today, Manhattan has become a multi-cultural environment.

American families are returning to the cities because of disappointment with the safety and the intellectual stimulation provided to their children in the suburbs. Crime in the city, for the most part, has been decreasing at a tremendous rate, and many families are finding that traveling an hour or two is not necessarily the answer for "quality of life". In addition to returning families with children large numbers of middle age and "young elderly" former New Yorkers living in the suburbs are returning to Manhattan because of the ready access to stores, superb health care facilities and special cultural amenities.

Representative sales in Prudential MLBKaye's Fine Home & Estates Division amount to over $50 million dollars and is rapidly expanding. Demand is high and supply is limited.

Another factor that is contributing to a major trend and will continue to transform the real estate industry rapidly is the information revolution. The newest and most valuable up and coming sites are web sites. This is changing the way and with whom we do business. Brokers are able to log on 24 hours a day to access new listing information. In fact, some of our firm's brokers have doubled their sales as a result of this new method of doing business. Technology has revolutionized how and where business can be done, and has created change in the type and location of real estate demand, it has changed the way people live, work, shop and play.

This is the end of the decade, the economic news is good, confidence is building and the rest of this year should be a fairly stable year. Today, the client doesn't want to be just satisfied, they want to be delighted, and a full service global company is needed to make this happen. As an affiliate of Prudential Real Estate, we are able to fulfill these requirements.
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Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Focus on: Residential Real Estate
Author:Kaye, Marilyn H.
Publication:Real Estate Weekly
Date:Mar 4, 1998
Words:610
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