Funding gross sales in New York Metropolis cratered in the course of the first half of 2020 because of the coronavirus pandemic, in accordance with a brand new report from the Actual Property Board of New York.
The true property commerce group reported that the greenback quantity of gross sales had declined 54 % yr over yr in the course of the first six months of 2020. There have been 1,229 transactions—representing a 32 % drop within the variety of offers in contrast with the identical interval final yr—totaling $10.5 billion.
Tax income dollars generated by funding gross sales additionally declined, by 49 % to $314 million, in contrast with the final half of 2019. Of that whole, $62 million went to the state and $252 million went to the town.
Multifamily offers took a severe hit in the course of the pandemic, declining 51 % in greenback quantity yr over yr, to $2 billion. The variety of rental property gross sales slid 29 %, to 465 transactions, in the course of the first half of 2020. The typical sale value for a rental constructing had additionally dropped 50 % to simply $17 million.
Unsurprisingly, motels noticed the most important decline in greenback quantity of gross sales, dropping 81 % yearly, to $294 million. With New York State and the federal authorities implementing strict journey restrictions in the course of the pandemic, New York Metropolis motels have been largely empty since March, and lots of have shuttered completely.
Retail gross sales quantity, too, slid 27 % yr over yr, and workplace gross sales quantity dropped by 47 % throughout the identical interval.
All 5 boroughs additionally noticed important drops in funding gross sales, with Manhattan predictably seeing the most important decline. The borough noticed a 59 % lower in yearly gross sales quantity, to $5.9 billion. Queens, in the meantime, misplaced 57 % of its gross sales quantity from the primary half of 2019, dipping to $1 billion from January via June of 2020.
“We proceed to see the devastating and long-lasting impacts the pandemic has had on the well being and stability of the New York economic system,” stated REBNY President James Whelan in an announcement. “Actual property is a elementary driver of the town’s economic system and it’s important to New York’s restoration that the trade bounce again. We are going to proceed to advocate for federal help that addresses the wants of each the actual property trade and New York’s general financial well being.”