Miki Naftali, Chairman and CEO of the Naftali Group, recently discussed a surge in real estate sales in New York City with Fox News Digital, noting a marked contrast to the market conditions four years ago. Traditionally, real estate sales across the United States slow down in anticipation of presidential elections. However, the New York metropolitan area is experiencing what is being termed a “pre-election bump.”
In 2019, Miki Naftali recalled, there was no notable rise in sales; in fact, the market was relatively slow. According to Alex Witkoff, co-CEO of The Witkoff Group, the unexpected strong sales momentum for One High Line ahead of the upcoming election suggests a growing sentiment among buyers. This shift is possibly due to buyers wanting to secure prime real estate before any post-election regulatory or economic changes.
Together, major real estate firms in New York City have achieved a combined sales total of over $503 million in 2024, with significant projects in Manhattan contributing to these figures. Miki Naftali highlighted the impact of COVID-19, expressing that many developers had refrained from development activities, partly due to constrained lending from commercial banks. Now, with increased demand and limited inventory, there is potential opportunity for growth in the market.
Currently, mortgage rates remain a topic of interest, with the 30-year fixed rate climbing to 6.72%. Buyers, such as those considering purchases at One High Line, may be motivated to act before the election in anticipation of potential market shifts.
Despite the betting markets suggesting a 58% likelihood of a Trump win over Harris, real estate developers emphasize that the market’s current upswing is driven by factors beyond just electoral outcomes, such as increased demand and promising rates. Alex Witkoff remarked on the ongoing appeal of New York City, with the real estate landscape focusing on long-term stability.
While the election may introduce variables to consider, Naftali opined that demand in urban markets is not solely linked to electoral outcomes. Instead, he believes that once the election passes, attention will shift to other economic challenges, and both candidates will likely aim to improve the economy.
Real estate developers pointed out the significance of fundamentals such as school zones and job opportunities over short-term electoral impacts. While acknowledging differences in candidates’ approaches to real estate, Naftali noted that the industry is more focused on local supply and demand dynamics and safety concerns.
Without endorsing a political stance, Naftali criticized Harris’s first-time homebuyer credit, suggesting that it would have limited impact on high-value markets like New York. He also mentioned Trump’s background in real estate, which may provide him a better understanding of the industry’s challenges and risks. Naftali emphasized that successful development to meet growing housing demands requires both private and government involvement.
