New York City’s investment sales market saw significant growth in the first half of 2024, with a notable 11% increase in transaction volume and a 23% rise in dollar volume compared to the second half of 2023, according to Ariel Property Advisors. This surge can be attributed to recent legislative actions such as the implementation of the 485x tax abatement and zoning changes under Mayor Eric Adams’ “City of Yes” initiative, which have instilled confidence among investors.
In total, there were $11.48 billion worth of transactions across 943 deals involving1,220 properties during this period. The second quarter saw a particularly strong acceleration. While mortgage maturities had previously impacted office properties, they are now driving activity in the residential sector as landlords seek equity through sales or refinancing. Around one-fourth (25%)of office transactions involved potential conversions into residential use.
However,the lack of a successor forthe421a tax abatement has dampened investment interestin multifamily properties with rent restrictions despite overall robust transaction figures totaling $3.95 billion.
