The following client alert has been written in collaboration with UrbanDigs.
Manhattan and Brooklyn residential condominium pricing has held steady through the second quarter of this year, according to UrbanDigs, but shifts in foreign exchange rates have made the market more accessible to certain international buyers. The U.S. dollar has declined nearly 11% this year against many currencies. That decline in currency value, combined with the price of New York City real estate, means international investors using British pounds, euros, Swiss francs, or Swedish krona see a cost advantage when purchasing New York City real estate.
Currency Shifts And Market Conditions
The dollar’s decline over the past 3 years also coincides with increased pressure on local real estate buyer activity. Median residential real estate sales prices have risen year over year in some categories and have kept some local buyers on the sidelines. New development condos in Manhattan are sitting at an all-time high of just over $2,000 per square foot, and resale condo prices have climbed to roughly $1,460 per square foot, which is also a new high.
Prices have been on an upward trend from a local perspective, but when adjusted for currency shifts, some international investors may see an effective discount of up to 18% compared to just over 3 years ago. A Manhattan condo that sold for €2 million in 2022 may cost closer to €1.75 million today. This quiet repricing reflects currency conversion rather than any change in market value.
Considerations For Non-U.S. Buyers
Foreign investors looking to enter the New York real estate market often find condos and townhouses the most appropriate purchase. These properties offer fee-simple ownership. Condos can also be easier to rent or hold long term and typically don’t involve the added requirements of co-ops, such as board approval and ownership restrictions on foreign entities.
When it comes to ownership structure, it is common for non-U.S. investors to use a limited liability company or trust. These setups can offer liability protection, privacy, and tax advantages, but also have specific reporting requirements under U.S. and New York law. A March 2025 rule change issued by FinCEN removed federal beneficial ownership reporting under the Corporate Transparency Act (CTA) for companies formed in the U.S., but certain foreign entities registered to do business in New York may still have filing requirements.
On the state level, the New York LLC Transparency Act, which is modeled after the CTA, will take effect on Jan. 1, 2026. The law will introduce new state disclosure requirements for LLCs formed in or qualified to do business in New York. All covered LLCs will be required to disclose the full legal name, date of birth, home or business address, and passport identification number or state-issued identification information of each beneficial owner.
The foregoing is not intended to be comprehensive nor constitute legal advice. If you would like to discuss your specific circumstances or would like more information, feel free to contact us at (212) 625-8505.