NYC Attracts More Chinese, Russian Real Estate Investors
It's not difficult to understand how some Chinese and Russian foreign investors have dominated the US real estate market, more so in New York City.
According to an article from the Observer News, Russian and Chinese foreign investments, share several characteristics as investors, considering their political background in their home country. However, the two nationalities are way different from the Japanese investors who flocked the US way back in the eighties.
Mermelstein described the Russian and Chinese investors as looking at the US market as their retirement fund than an alternative place for investments. Over the years, it is not uncommon to see headlines detailing Chinese and Russian closing multi-million dollar real estate deals across the country.
In 2014 alone, he added, roughly $6 billion worth of investment has been recorded in the US from some Chinese investors. Around 75 percent of the total amount or $4.5 billion was invested in Manhattan. Today's Chinese and Russian investors in the US are among the key players in the US economy.
Mermelstein said that Chinese and Russian both sharing a common part of history being under a communist regime, it's understandable the two nationalities share some common collective characteristics as investors.
"This has translated into the common language of capitalism. The similarity has also fostered respect among local Russian businesses for Chinese clients, as we see large numbers of extremely private Chinese investors seeking advice from non-Chinese advisors, brokers and attorneys," Mermelstein wrote in his article.
However, an article published by The Real Deal showed that the vibrant presence of Russian real estate buyers in the US, particularly in New York City, might start to plummet anytime soon as tension between the US and Russia is brewing. It can be recalled that Russia's move to annex Crimea has caused tension between Russia and the US, which resulted in many wealthy Russians starting to call off some deals.