The US market
During the past few years land values in Manhattan have reached new heights, with more land below 110th Street selling for at least $300 per buildable foot, and strong locations priced in excess of $700 per square foot. The drivers for this market have been the worldwide real estate market's strength, low interest rates, the weakness of the dollar, domestic and foreign focus on Manhattan, the city's resilience after 9/11 and continued economic expansion. Many of these factors reflect temporary market aberrations. However, the most important drivers reflecting permanent market adjustments are what make New York an excellent long-term investment, according to US estate agent Studley. New York consistently emerges as the most expensive US city on both a cost of living and real estate price basis.
In the pre-globalized world domestic comparisons were of little relevance. However, a series of globally elite cities have begun to compete more with each other than with their own domestic markets for labour talent and business investment. More than ever before, New York's competition comes from such cities as London, Paris and Tokyo rather than Los Angeles, Washington, DC and Boston. This will only be strengthened in an increasingly globalized world dominated by multinational firms and non-governmental organizations.