Real estate prices are steadily rising in New York as the city recovers from a pandemic-induced economic recession. It's been a few weeks since pandemic-related restrictions were lifted, and the city's business buildings have begun to show indications of new activity. Some people who fled during the lockdown period are returning to their abandoned houses. Office buildings are slowly filling up with workers. Retail businesses, restaurants, and bars are waiting for additional customers.
New York Commercial Real Estate Insights
The city's real estate business is more enthusiastic about what lies ahead for land deals in the city in the near term. First-quarter 2021 real estate broker confidence index was 6.66, up more than 50 percent from last year.
As a result of the pandemic's financial consequences, the government is spending a lot of money to improve the city. With a record-breaking $98.6 billion in federal funds, Mayor Bill de Blasio just unveiled his "recovery budget." An additional $212 billion in financing for pandemic-related economic relief was approved by the New York State Legislature.
Business and Recent Impact
Another business affected by the pandemic is the city's tourism industry. About 20 percent of the city's 700 hotels have been shuttered, and some have been or are being turned into affordable housing. What's more, the worst may be gone for those hotels that made it through the epidemic intact. While occupancy rates are still significantly lower than before the epidemic, it's heartening to see that more tourists – who have gotten COVID-19 vaccines – are booking summer holidays in the city's hotels. The mayor also issued an executive order suspending the city's 5.87 percent occupancy fee to attract more tourists.