Is NYC Real Estate Quietly On Sale For Foreign Investors?

Forbes

16-07-2025

For buyers transacting in select foreign currencies, this could be a strategic opportunity to deploy ... More capital into hard assets, entering a market that is historically resilient, globally respected, and available at a discount.
While current NYC headlines paint a picture of rising prices alongside stagnating action in the real estate market, foreign investors might be seeing something else entirely: opportunity.
Data from the second quarter of 2025 showed that pricing for Manhattan and Brooklyn condos remained remarkably stable, even flirting with new highs in specific sectors, despite April's macroeconomic fireworks display. However, thanks to the dollar's sharp decline since 2Q 2022, these condos now appear to be significantly cheaper for buyers abroad. This represents a rare alignment between local pricing stability and a material foreign exchange (FX) discount. For international investors, this could be a tactical moment to re-enter the NYC market as some prices have fallen up to 18% due to currency movements alone since April 2022.
This analysis focuses on the British Pound (GBP), Euro (EUR), Swiss Franc (CHF), and Swedish Krona (SEK), four eurozone currencies commonly associated with institutional and high-net-worth investors in NYC real estate.
Dollar Dip
As The New York Times reported in late June, the U.S. dollar has dropped nearly 11% since the beginning of the year, its worst start in over five decades. The global implications can be immediately felt in NYC real estate. For investors transacting in Euros, British pounds, Swiss francs, or Swedish Krona, the dollar's slide acts like a price cut even before negotiations.
Moreover, this shift occurs at a time when local buyers remain on the sidelines. Since 2Q 2022, the post-COVID peak for NYC real estate, mortgage rates have risen, and buyer activity has fallen. Today, rates remain elevated, summer seasonality is in full effect, and affordability pressures are keeping local buyers on the sidelines. At the same time, recent quarterly data shows that the median sales price in Manhattan and Brooklyn rose year-over-year. This mismatch between soft sentiment, firm pricing, and currency-driven discounts creates opportunity.
Manhattan
Despite the slowing market, Manhattan resale condo pricing just hit a new high of $1,461 per square foot, while new development condos currently sit just below their all-time high at $2,077 per square foot. From the local perspective, prices are holding strong. But when FX-adjusted, material discounts are evident, and the opportunity is plainly visible.
Manhattan Resale Condo Price Per Square Foot | Q2 2022 to Q2 2025 | USD vs. British Pound, Swiss ... More Franc, Euro, and Swedish Krona
Manhattan New Development Condo Price Per Square Foot | Q2 2022 to Q2 2025 | USD vs. British Pound, ... More Swiss Franc, Euro, and Swedish Krona
Note that these discounts are not fire-sale prices. Instead, they are a quiet repricing that could favor global buyers who have been patiently waiting for the right entry point. In practice, that means a €2 million condo in 2022 might cost €1.75 million today, because the dollar fell, not prices.
Brooklyn
Brooklyn, already viewed by many New Yorkers as a value play, is now offering even steeper FX discounts, especially in the new development sector, where costly supply is colliding with slower velocity.
Brooklyn Resale Condo Price Per Square Foot | Q2 2022 to Q2 2025 | USD vs. British Pound, Swiss ... More Franc, Euro, and Swedish Krona
Brooklyn New Development Condo Price Per Square Foot | Q2 2022 to Q2 2025 | USD vs. British Pound, ... More Swiss Franc, Euro, and Swedish Krona
Unlike statistical anomalies, these discounts reflect real-time opportunities. Brooklyn's prices surged post-COVID, but now, with the FX tailwind, foreign investors can acquire condos at levels unseen since the rebound began. As a bonus, thanks to hindsight, today's buyers have better clarity on fundamentals and tenant demand.
Why condos?
For international buyers, whether they are individuals or institutions, condos represent the path of least resistance to the real estate market in NYC. Condos offer:
In short, condos offer the easiest route to gaining exposure to the NYC residential real estate market at scale. And for foreign investors, that entry point may now be more affordable.
Why now?
As noted earlier, what makes this moment feel more compelling is the contradictions. The local market environment feels uncertain, but pricing remains firm. Volume is down, but values are holding up. Local buyers are interested but fatigued. Manhattan's second quarter showed strength across its core metrics, including higher sales prices, shorter time on market, and lower discounts. The median resale condo price rose 7.3% year-over-year to $1.572M, while the average price jumped 9.2% to $2.639 million, despite global macroeconomic uncertainty.
While these stats paint a picture of a resilient market, it's not as simple as 'up and to the right.' These Q2 sales largely reflect deals signed early in the quarter before the market wobbles and political noise had a chance to sink in. Real-time market signals, such as UrbanDigs' Climate Index, which measures the ratio of successful to unsuccessful listings, suggest that the market cooled throughout Q2 and will likely continue to stagnate over the seasonally slower summer season. The market remains transactional, but sellers just have to work a bit harder to get a deal done. For local buyers facing higher mortgage rates and affordability questions, summer's seasonality means there's certainly no urgency to transact. However, for international investors, strong market fundamentals combined with increasingly frustrated summer sellers and an attractive FX discount provide a tactical edge.
Conclusion
There is no panic in the NYC market or dramatic price collapse. From a domestic perspective, there's no need to rush into an already expensive market when uncertainty still looms large. However, when viewed through an international lens, the math has changed. NYC is quietly on sale. For buyers transacting in select foreign currencies, this could be a strategic opportunity to deploy capital into hard assets, entering a market that is historically resilient, globally respected, and available at a discount.
Price Appreciation in Manhattan and Brooklyn Over Time, As Illustrated in Price Per Square Foot From ... More 2008 to 2025
New York real estate rarely offers broad-based, overt discounts, so a double-digit currency-driven discount is as close to a markdown as investors may get. For certain foreign investors, the discount is already priced in. The only question is if it will be recognized in time.