New York became the most attractive real-estate market for foreign investors by surpassing London

Economy Nilgun Salim
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The most populated U.S. state surpassed London and became the most attractive location for real estate investors.

This massive change is a side effect of the significant growth reported by the U.S. economy, which started to attract more and more buyers.

Meanwhile, the real estate industry from London reported a massive collapse amid Brexit, reports Bloomberg.

According to a report conducted by Cushman & Wakefield, foreign investors spent around $25 billion dollars on New York real estate in the past 12 months, while the annual value of the properties from London dropped from $39 billion to $25 billion dollars, during the exact same period.

‘London has lost ground due to the concerns amid Brexit. The high prices affected the market even before leaving the EU’, suggested the report.

Also, several cities from Asia might grow in the real-estate industry, especially Tokyo, Shanghai and Hong Kong.

The uncertainty induced by the referendum created the most toxic combination of eye-popping taxes and investment projects ruined by the cruel reality of the market.

In a city with a questionable economic future, developers completed more than 5,600 properties in the second quarter.

The uncertainty surrounding the Brexit and the negotiations between EU and UK might accelerate the collapse, initiated by the increased taxes.

‘Brexit was a rough awakening for the luxury real estate market from London, mostly affected by the higher property taxes’, said Savills Research CEO Lucian Cook.

‘It is difficult to see from where the pressure will be triggered until we have the result of the negotiations’, added the expert.