Driven by the dollar

The last great influx of investment came from Europeans who rushed to take advantage of the record strength of the euro against the dollar in 2007.

Foreigners are once again buying in Manhattan,energizing the still-fragile market. In recent months,according to brokers and developers,the money has been just as likely to come from South America or Mexico as Europe or the Middle East.

The dollar,more than anything else,drives international sales,and because it remains weak globally,New York is still a good deal for many buyers. Jaime Gorozpe,the founder of an upscale travel agency in Mexico City,spends about 200 nights a year in hotel rooms,including 80 nights in New York city. So instead of paying more than $500 a night for a luxury hotel room in Manhattan every time he visited,he decided to invest in an apartment.

“It’s better to have a small place of my own than a five-star hotel,” he said as he walked through his newly purchased one-bedroom apartment in the Centurion at 33 West 56th Street,designed by Pei Partnership Associates with IM Pei. He talked about where he would place a favorite Eames chair,and where he would hang some paintings that he had bought at the Gagosian Gallery. Mr. Gorozpe,38,also enthused about a major draw of the elegant building: it’s within walking distance of Central Park. “For me,” he said,“the park is New York City.”

Forces at play beyond American borders influence this market. Some countries have eased banking rules that regulate the transfer of currency,making transactions simpler. Many investors are also concerned about political instability in their own countries and view New York real estate as a safe haven.

“I think foreigners are coming back into the New York City market with a vengeance,” said Khashy Eyn,the chief executive of the boutique brokerage Platinum Properties,which has opened an office in Paris to serve the New York market. Mr. Eyn says 80 percent of his business comes from overseas.

For Europeans,with the euro trading at above the dollar,“their money is worth 34 per cent more now; it is a very safe bet for them,” Eyn said. Nevertheless,Antonio Cosentino,an associate broker at Corcoran,said that while the international money once chased New York,New York now chases the money.

Cosentino,who specializes in international sales,recalled a business trip to Italy in 2007. “We would set up in a conference room at the Four Seasons in Milan for three days and from 8 in the morning until 10 that night we would have people coming in looking to make deals,” he said. The tab for his airfare,hotel and local advertising were picked up by the developer of a Manhattan property. “We didn’t even have time for lunch.”

Last November,Cosentino went on a scouting trip to Shanghai. “It was a disappointment,” he said. While he loved the city,business was slow. “There were two main obstacles,” he said. “The Chinese government does not allow currency exports over a certain amount,and for those who could get around those banking rules,there were concerns about getting a visa.”

Many foreigners,not just the Chinese,complain about the strict enforcement of visa regulations by the United States since September 11,2001. China is one of the two markets that most interest Manhattan brokers. The other,India,also restricts the amount of money that can be taken out of the country.

While some wealthy Chinese and Indians have overseas bank accounts,many do not. Those without must find creative ways to put together the cash they need when they shop for properties in the United States. For instance,Mr. Cosentino says he has worked with Indian buyers who give five or six relatives $100,000 each to send out of the country — the maximum allowed for an individual — so they can make a down payment.

To reach potential clients,brokers and developers must rely on small networks of investors they have cultivated over the years rather than large trade shows or direct advertising in local markets. “My brokers that focus on foreign buyers tend to hyperfocus on specific countries,” said Pamela Liebman,the chief executive of the Corcoran Group. And direct engagement was key.

“I had one broker a couple of years ago move to Italy to work the whole Italian market,” Liebman said. One challenge for brokers and developers is convincing investors that Manhattan stands apart from the national real estate market.“Some people think they are going to find properties going for 50 cents on the dollar in the New York market,” said Amy Williamson,the vice president for sales at Prodigy Network,which specializes in international sales. “That can be a problem.”

Daniela Sassoun,an associate broker at Corcoran whose focus is the South American market,said she recently received a call from someone who wanted “a distressed property on Fifth Avenue going into foreclosure.”

“I was,like,let me know and I will buy it myself,” she joked. “Manhattan is not Phoenix.” International buyers often need someone to actively manage the property,overseeing everything from renovations to renting. Jason Feng,a general manager of a business in Taiwan,said he had worked with Ms. Williamson to buy a two-bedroom apartment in Chelsea for his daughter when she moved to New York in 2008.

“A good,patient agent makes the property purchasing process much more transparent,and thereby easier,” he said,“especially for a foreigner who is unfamiliar with the market.” Feng later bought a second apartment,a one-bedroom in the financial district,as an investment. For two years,he said,Ms. Williamson has helped ensure that the place is rented out.

Sassoun,who often manages her clients’ properties for no fee,finds that these days buyers are less interested in short-term investments. Recently,she added,there has been a surge of interest from Brazil and Venezuela,although for different reasons.

“In Brazil,it used to be very difficult to send money from a bank in Brazil to a bank in America,” she said. As restrictions were eased,more Brazilians came to New York. It also does not hurt that the Brazilian real is trading at about 1.7 to the dollar.

And it helps that Manhattan real estate has remained stronger than in markets traditionally favored by South American buyers,especially Miami. Nervousness over the political situation at home can also translate into a New York apartment.

International buyers from far-flung corners often arrive with a deep knowledge of Manhattan — even,for instance,seeking an apartment on a certain street or near a favoured restaurant. “As a foreigner,” Gorozpe said,“you want to be at the heart of it all. For me,there is no better place to be.”