Condominiums have long been a popular form of housing in New York City. A new surge in condo development and construction will put twice as many units on the market in 2015 as in 2014. It is predicted to be the greatest number of new condo units opening for sale in the city since 2007.
No fewer than 6,500 new condo units are expected to hit the market in over 100 buildings below 96th Street in Manhattan. Many of the new units are for the high-end luxury market, particularly in Midtown. But one developer notes that over half the new units are in the so-called mid-luxury level, which go for $1,700 to $2,300 per square foot.
The number of entry level units, priced at under $1,700 per square foot, is also expected to increase; more than 800 units in that range are expected to open for sales in the coming year, as compared to 306 in 2014. The overall market share in the entry-level category is expected to remain constant, however, at about 13 percent of all new development. One observer notes that high land prices make it hard for many developers to make money in this segment.
New buildings dominate the condo surge. Fifty-nine percent of new development is being constructed from the ground up. To make their developments stand out in a crowded market, builders are emphasizing high-quality construction, along with innovative architecture and interior design.
Major construction projects require sophisticated legal representation. Counsel will work with developers in performing due diligence, drafting construction contracts and working through title, zoning and regulatory issues. Careful contract negotiation and drafting is essential to avoid construction litigation and breach of contract disputes. Working with an experienced New York real estate law firm can help the project get to completion on time and within budget.
Source: New York Times, “Year of the Condo in New York City,” Michelle Higgins, Jan. 2, 2015