GCC investors are returning to the New York real estate market after sitting on the sidelines during the global financial crisis, according to new research from property firm IP Global.
The report says appetite is returning for property investment in Manhattan, buoyed by strong yield opportunity and a low cost of funds.
"Manhattan has long been one of the most popular markets in the world for international buyers, with many of those gravitating from the GCC," said Tim Murphy, Founder and CEO of IP Global, "At present, foreign buyers make up 15 per cent to 20 per cent of all home sales in Manhattan," he added.
According to Murphy, many GCC investors chose to sit on the sidelines throughout the global financial crisis but are now returning to the market. He said they were attracted by a post crisis uptick in property values, driven by short supply, low cost of funds and security of ownership rights.