A sign advertising a home for sale is displayed outside of a Manhattan building in New York City on April 11, 2024.
Spencer Platt | Getty Images
Manhattan is becoming a buyer’s market as apartment prices fell and inventory rose in the second quarter of 2024, according to new reports.
The average real estate sales price in Manhattan fell 3% to just more than $2 million, according to a report from Douglas Elliman and Miller Samuel. The median price fell 2% to $1.2 million, and prices for luxury apartments fell for the first time in more than a year, according to the report.
The price declines are a result of rising inventory of apartments for sale, which are also taking longer to sell. There are now more than 8,000 apartments for sale in Manhattan, which is higher than the 10-year average of about 7,000, according to Jonathan Miller, CEO of Miller Samuel, the appraisal and research firm.
Manhattan now has a 9.8 month supply of apartments for sale, which means it would take 9.8 months to sell all of the apartments on the market without any new listings, according to Brown Harris Stevens. “Any number over 6 months tells us there is too much supply and we are in a buyer’s market,” according to the Brown Harris Stevens report.
The falling prices and rising number of unsold apartments in Manhattan stand in contrast to the national real estate landscape, where continued tight supply continues to keep prices high. Brokers and real estate analysts say the strong prices in Manhattan post-Covid became unsustainable, and both buyers and sellers are finally capitulating to a higher interest rate environment.
The sun sets on the skyline of midtown Manhattan and the Empire State Building in New York City, as seen from Jersey City, New Jersey, on April 23, 2023.
Gary Hershorn | Corbis News | Getty Images
“The buyers and sellers resolve is weakening,” Miller said. “At a certain point, they can only wait so long before they feel like they have to make a move.”
With the gap narrowing between buyer and seller expectations, more deals are closing. There were 2,609 sales in the second quarter, up 12% from a year ago, according to the Douglas Elliman and Miller Samuel report. That marked the first sales rebound in two years.
“As the second quarter began, New York’s real estate market awakened from the doldrums in which it had languished for the first quarter of 2024. Deals in all price categories began to emerge,” said Frederick Warburg Peters, President Emeritus of Coldwell Banker Warburg.
High rents in Manhattan are also continuing to help sales. The average apartment rental price in May was still upward of $5,100 a month and rents tend to rise in the late summer. Many potential buyers who were waiting out the sales market in rentals are finally deciding to buy, hoping interest rates will start to come down at the end of 2024 or early 2025.
“If people were sitting on the fence, the high rents maybe helped push them into the sales market,” Miller said.
Still, mortgage rates have a more muted effect on Manhattan real estate than the rest of the country since most Manhattan sales are in cash. In the second quarter, 62% of deals were all cash.
While prices fell for all segments of the Manhattan real estate market, the high end is among the weakest, as the wealthy hold off on purchases until after the uncertainty of the elections. The median sale prices in the luxury segment — or the top 10% of the market — fell 11% in the second quarter, according to Miller Samuel. Listing inventory of luxury apartments surged 22%.
“With the high end, this weakness could be the beginning of a trend or just a one-off,” Miller said. “We will have to see what happens in the second half.”
After two years of activity, OpenWealth has a portfolio of 45 clients, around 20 consultants and five specialised centres in Spain, to which one more will soon be added in Lisbon
The CaixaBank subsidiary has created an advisory committee made up of independent experts with the aim of further strengthening the value proposition for its customers
OpenWealth, the CaixaBank subsidiary dedicated to providing independent wealth advisory services for large clients, surpassed 7.3 billion in assets under supervision at the end of April 2024, making it not only the largest wealth advisory firm for Ultra High Net Worth clients, but also the largest multifamily office service in Spain.
In just two years of activity, OpenWealths offer, based on high specialisation and diversification, has allowed it to consolidate its position as a leader in the sector in the country. CaixaBank was the first bank in Europe to launch this service, 100% independent and with an explicit charge, which is offered to people with assets worth over 50 million, regardless of whether or not they are customers of the bank and regardless of where they have their assets deposited, which can be in different entities.
In recent months, OpenWealth has increased the number of clients to a portfolio of 45, and consequently its team of professionals, now made up of 17 consultants compared to the initial five, with the aim of continuing to guarantee the quality and personalisation of the service at all times.
The entity, which has offices in Madrid, Barcelona, Valencia, Bilbao and Malaga, will soon open a centre in Lisbon (Portugal), promoting the further internationalisation of its services and client portfolio.
As a result, OpenWealth expects to exceed not only its initial business estimates but also the improved forecasts made last October, when it announced the objective of reaching 10 billion in assets under management and 50 clients by 2025, consolidating a unique value proposition in the market.
Sol Moreno de los Rios, CEO of OpenWealth, highlighted how: OpenWealths growth in its two years of activity is a sign of the great acceptance of our disruptive and unique value proposition in Spain, one that is based on adapting to the needs of our clients and maximum personalisation, diversification and specialisation. We join the best of the two worlds: the advantages of being an independent and flexible boutique, and those of belonging to the leading financial group in the peninsula, which allows us to offer innovative and exclusive solutions.
OpenWealth was born as a holistic service from an independent entity focused on the big issues affecting business families, including governance, family vision, strategic planning, education of new generations, succession, and analysis of investment opportunities. In addition, OpenWealth offers risk and cost control services, family office/investment organisation, as well as a technological tool for wealth consolidation and portfolio risk management. The entity has specialists in real estate, infrastructure, listed markets and private markets.
In this way, it covers all the clients needs, from the strategic asset allocation process and consolidated information to the search for national and international providers of specific services. OpenWealth works with entities outside the CaixaBank Group that can provide advisory, discretionary portfolio management, reception and transmission of orders (RTO) and custody services. At present, 74% of balances are deposited with, advised or managed by entities other than CaixaBank.
New advisory committee
Furthermore, OpenWealth has created a new advisory committee, made up of a selection of independent experts with diverse profiles and recognised prestige, with which it seeks to reinforce its value proposition and knowledge of the market. The committee, which met for the first time on 20 June, will meet quarterly and will help OpenWealth continue to innovate and transform its proposition and learn about trends in the global high net worth and family office industry to anticipate new client needs with tailored solutions.
The committee is made up of:
- Ines Andrade has been a partner at AltamarCAM Partners since 2011, where she has held various positions since joining in 2008, including the position of Deputy Chair from 2016 to 2021. She currently holds the position of Chair of the Client Solutions division, which specialises in the integrated management of tailor-made investment programmes in global private assets. She also serves as an independent director of Técnicas Reunidas S.A. and Vidrala S.A. She graduated Summa Cum Laude in Finance and International Business from Georgetown University in Washington, DC (USA).
- Juan Bejar is the co-founder and chairperson of Bruc Management Projects, since 2015, and non-executive chairman of Globalvia Infraestructuras since 2013. In his career, he has held management positions in various companies, was senior advisor at Greenhill&Co International and served as a member of the Board of Directors of Metrovacesa between 2018 and 2022. Béjar holds a degree in Law and Business Administration and Management from the Universidad Pontificia de Comillas (ICADE).
- Juan Gandarias: director and senior advisor on various boards of the CaixaBank Group (Asset Management, Wealth Management Luxembourg and Wivai) and acts as senior advisor to some family offices and Private Equity investee companies. He previously worked at Citibank, AB Asesores, Morgan Stanley and CaixaBank where he held, among others, the position of CEO of CaixaBank Payments & Consumer. He holds a degree in Agricultural Engineering from the Polytechnic University of Madrid, an MBA from IESE and has completed the Value Creation Through Effective Boards programme at IESE & Harvard Business School.
- Blanca Hernández is founder and CEO of Magallanes Value Investors, as well as founder and president of Techo Hogar Socimi. She is also currently a member of the board of directors of Ebro Foods and PharmaMar and chairs the Ebro Foundation. She holds a degree in Economics and Business Administration from the University of Seville and a degree in Humanities from the European University of Madrid. He also holds a Masters degree in Finance from CUNEF.
- Carlos Nueno began his professional career in 1999 as co-founder and CEO of Advance Medical, a company he founded and led for 25 years. Following the sale of Advance Medical, he joined TeladocHealth as head of international business. He holds an Industrial Engineering degree from the Polytechnic University of Barcelona, an MBA from IESE and has completed an Executive Program in Leading Global Business at Harvard Business School.
- José María Ortiz has held the position of vice-rector for development at Villanova University since January 2024. He has previously held multiple positions in the academic sector, as Vice-Rector for Academic Organisation at the University of Nebrija, where he also held the positions of Secretary General and Director of Human Resources between 2004 and 2009. In 2009, he became Dean of the Faculty of Social Sciences, Law and Business at the Francisco de Vitoria University. He also worked at HayGroup between 1998 and 2009. He holds a PhD in Philosophy, with the Extraordinary Prize for Bachelors Degree and Doctorate, from the University of Navarre.
- Fernando Ruiz was Chair of Arthur Andersen in Spain and a member of Deloittes worldwide executive committee until the end of 2022. He is currently chair of the Seres Foundation, of the Board of Trustees of the Teatro Real, and of the Board of Trustees of the Colegio Libre de Eméritos. He is also a member of the advisory boards of Loyola University, Deusto University, ESADE and the European University. He holds a degree in Economics and Business Administration from the Autonomous University of Madrid.
Strategic alliances
As a 100% independent service, OpenWealth works with more than 20 national and international banks.
It has recently signed a strategic alliance with Fiduciary Trust International, a renowned US firm with over 100 billion of assets under management, which offers customised wealth management solutions for individuals, families and foundations.
With this alliance, CaixaBank seeks to share best practices, information, experience and knowledge of the family office sector in the United States, where it leads the industry.
An internationally recognised private banking model
CaixaBank Private Bankings value proposition offers various service models to adapt to each customers needs and preferences. The entity focuses its strategy on the high qualification, commitment and talent of its managers; that embrace the latest technological advances, with the aim of offering the best customer experience at any time and in any place.
This model has received recognition this year from multiple international publications in the sector. Euromoney magazine has recognised CaixaBank Banca Privada as Best Private Banking Institution in Spain 2024 and Best Private Banking Institution in Discretionary Portfolio Management in Spain 2024. Meanwhile, its commitment to OpenWealth has earned it the awards of Best Private Banking Institution for UHNW in Spain 2024 and Best Private Banking Institution in family office services in Spain 2024.
In the field of innovation, PWM magazine (Financial Times Group) has recognised CaixaBank Banca Privada as Best Digital Private Bank in Europe 2024 and Best Private Bank in Digital Communication and Marketing in Europe 2024.
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Pawel Kentaro, a renowned authority in Mexicos real estate sector, unveils the countrys prime investment hotspots, providing valuable insights on where investors can secure property for profit. With a wealth of experience and expertise, his guidance is instrumental for investors seeking to capitalize on Mexicos dynamic real estate market and achieve lucrative returns.
Mexicos real estate market offers a diverse range of investment opportunities, from bustling urban centers to tranquil coastal communities. Kentaros in-depth analysis identifies the key hotspots that are primed for investment success, taking into account factors such as economic growth, infrastructure development, and demand trends.
As Mexicos real estate market continues to flourish, its essential for investors to identify the prime investment hotspots that offer the greatest potential for profit, says Kentaro. By focusing on key factors such as location, market dynamics, and growth potential, investors can make informed decisions and secure property in areas poised for long-term appreciation.
Kentaros insights into Mexicos prime investment hotspots cover a variety of regions and property types, including:
Riviera Maya: The Riviera Maya, stretching along Mexicos Caribbean coast, is renowned for its pristine beaches, vibrant culture, and world-class amenities. Pawel Kentaro highlights the regions strong demand for vacation homes, rental properties, and luxury developments, making it an attractive investment destination for investors seeking exposure to Mexicos thriving tourism sector.
Mexico City: As Mexicos bustling capital city, Mexico City offers a wealth of investment opportunities across residential, commercial, and mixed-use developments. Kentaro identifies key neighborhoods such as Polanco, Condesa, and Roma as prime investment hotspots, with strong demand from young professionals, expatriates, and investors driving property values and rental yields.
Los Cabos: Located at the southern tip of the Baja California Peninsula, Los Cabos is a premier destination for luxury real estate and upscale living. Kentaro explores the regions luxury residential developments, golf communities, and waterfront estates, which appeal to affluent buyers seeking exclusive amenities and breathtaking views of the Sea of Cortez.
Tulum: Tulum, known for its bohemian charm and eco-friendly ethos, has emerged as a hotspot for sustainable development and boutique hospitality. Kentaro highlights Tulums growing popularity among investors and homebuyers who are attracted to its laid-back lifestyle, pristine beaches, and opportunities for eco-conscious living.
Guadalajara: As Mexicos second-largest city, Guadalajara offers a dynamic real estate market with opportunities for investment in residential, commercial, and industrial properties. Kentaro explores emerging neighborhoods such as Zapopan, Providencia, and Chapalita, which are experiencing rapid growth and urban revitalization, making them attractive investment targets for savvy investors.
Mexicos prime investment hotspots offer a range of opportunities for investors to capitalize on the countrys vibrant real estate market, says Kentaro. By conducting thorough due diligence, staying informed about market trends, and seeking expert guidance, investors can secure property in areas poised for growth and profit.
As Kentaro reveals Mexicos prime investment hotspots, he remains committed to providing valuable insights and guidance to help investors navigate the market and achieve their investment objectives.
About Pawel Kentaro
Pawel Kentaro Grendys is a leading expert in Latin American real estate. His background includes residential and commercial experience, and he offers extensive knowledge about local investment laws and building codes.
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