One of the most noticeable economic events of the past months was the collapse of gas price all around the United States. While the effect was positive for the American consumer, it did have a profound negative effect on the Russian economy. This is because much of Russia’s economy is dependent on high oil prices and with their collapse has sparked a downfall in the value of the ruble, the currency of Russia.
So, what does that have to do with the real estate market in New York City?
As it turns out, many Russian investors are trying to protect their own wealth by investing in stable real estate markets like the one in New York City. While the investors have managed to find many excellent properties across the US, New York City thanks to its unique real estate market is one that they have found particularly attractive.
Investors have managed to pour a considerable amount of funds into the NYC real estate market ever since the oil prices began falling and even somewhat before when signs of their economy was already on shaky ground. While it was perceived as a gamble at that time, today it is now commonplace to find many Russian investors trying to protect what they have by turning it into real estate assets that they believe will grow over the foreseeable future.
How the NYC Real Estate Market has Benefitted?
The truth about the movement of investors to real estate can really be traced back several years as the rise of the Russian economy thanks to the high prices of oil created a considerable number of wealthy Russians who in turn have been looking for ways to diversify their accounts to protect themselves in case that the Russian economy collapsed.
In the NYC market, the result has been either new Russian investors purchasing larger properties or those who have already done so hanging onto what they own unless they get a fantastic deal in order to protect their own wealth. Many investors who own properties are looking to rent than sell so that they can create healthy income streams.
With the number of investors from Russian essentially doubling in terms of their investments in the US, it is little surprise that real estate markets around the country are being purchased by them as a result. In fact, the word is that many of these latecomers are saying that they wished they had diversified their accounts by investing in properties such as those available in NYC earlier in 2014.