The financial crisis in Turkey after the lira's decline could have a bad effect on real estate prices and investment in New York if the crisis extends to emerging markets, but this has not happened yet, according to "The Real Deal".
The
Website pointed out that a large demand from US investors to buy real estate in
Turkey, as a result of cheap prices after the devaluation of the Turkish lira
against the dollar.
According to "Real Capital Analytics", companies from Turkey have bought commercial properties in New York city worth $231.4 Million since 2000. Other emerging economies such as Argentina, Brazil, India and Mexico have bought only $ 4.5 billion of New York City property since 2000.
The
site pointed out that although there are some warning signs indicating that the
crisis may extend to the real estate market in New York, the market is trying
to overcome.
The
report added that turmoil in emerging markets could prompt investors to buy more
dollar-denominated bonds, which would push US interest rates down and raise
property prices.
"I think the greater uncertainty is negative for the overall size of the investment," said Heidi Learner, chief economist at Savills Studly, a major real estate services company in New York.
"The crisis with Turkey only highlights the lack of clarity in US relations with our other trading partners, specifically China," she said.
The
lira crisis could open the door for investors looking for deals outside the US,
Learner said.