Brooklyn real estate investment cooled in 2017, but demand for core markets remains strong
Brooklyn investment property sales languished in 2017, mirroring a trend seen throughout New York City, as buyers and sellers failed to meet each other’s pricing expectations. Interest, however, remains strong, particularly in neighborhoods that have been primary targets for institutional capital, such as Williamsburg and Downtown Brooklyn.
Concern about a new U.S. presidency, interest rates rising, rent regulation, and the compression of rents kept many Brooklyn real estate investors sidelined early in 2017. While market uncertainties dissipated in the second half, it was not enough to offset palpable weakness at the beginning of the year.
During 2017, the borough saw 1,111 transactions consisting of 1,398 properties, totaling approximately $6.37 billion in gross consideration. Compared with 2016, dollar and transaction volume dropped 19 percent and 16 percent, respectively, while property volume slid 15 percent.