Strong Demand for High-End Real Estate in the Hamptons

HAMBURG, Germany and SOUTHAMPTON, England, May 30 /PRNewswire/ -- The demand for high-end residential real estate in the Hamptons - New Yorkers' preferred second-home location in the eastern section of Long Island - is traditionally very strong. While the extreme price increases of the past few years appear to have leveled off somewhat in Southampton, East Hampton, Westhampton, Bridgehampton, Sag Harbor and Hampton Bays, there is a constant demand for luxury properties in the most popular locations, which translates into high prices for this category of real estate. The Engel & Volkers Group, Germany, has set up an office in Southampton in 2005, with its motto of service "Made in Germany".

"In addition to New Yorkers, our office is also a starting point for numerous potential buyers from Europe and Asia who are looking for luxury properties in the Hamptons," says the Managing Director of the Southampton Office, Laura Bennett. With its headquarters in Hamburg, Germany, Engel & Volkers is one of the world's leading high-end real estate companies. Licensed partners currently operate in more than 200 residential real estate shops in 25 countries and on every continent. "Through this successful global network, we receive inquiries from all over the world," adds Laura Bennett.

Increasing international demand is linked to successful economic performances in recent years in Asia, Eastern Europe and - once again - in Western Europe. Potential customers now have more and bigger real estate assets and are increasingly mobile. "Along with a higher international demand for luxury properties in all the well known, desirable locations worldwide, there is continuing strong interest in New York, especially Manhattan, and also in the Hamptons. Above all, it's the global economy and high-performance of investment bankers and Wall Street traders, coupled with a strong Euro and British Pound Sterling, that are providing attractive opportunities for people looking for sound real estate investments", says Laura Bennett.

There is insufficient supply to meet potential demand in prime locations. Real estate is in some instances registering enormous price increases, according to research from Engel & Volkers. In the village of East Hampton, for example, house prices increased last year by one third, on average, to $3.4 million. Ron Baron, founder of the investment company bearing his name, paid $103 million for a 40-acre parcel in East Hampton. Baron's purchase price was more than double the former Hampton's record of 45 million for Burnt Point, the mansion on Georgia Pond purchased in 2005 by Stewart Rahr. In Sagaponack the average price of a home increased by more than 40% to $5.5 million last year. "We assume that we will see a significant number of sales above the $10 million mark this summer in the best locations in the Hamptons," says Laura Bennett.

In the past ten years there have been huge increases in the price of real estate in this area. Homeowners have thus seen the value of their assets rise considerably. Even in the less sought-after locations, values have doubled or even tripled. In Westhampton, the average price of a single family home increased from $274,000 in 1997 to more than $600,000 today. In Hampton Bays, over the same period average house prices increased from $129,000 to over $500,000.

Leaving aside waterfront or Estate properties, however, the price increase is slowing down. "We take the view that this is a re-adjustment of the real estate market caused by a generally cooler US economy.", says Laura Bennett. "This is a healthy development if you take into account the sharp increases over the past few years."

The Engel & Volkers Group is one of the world's leading real estate companies with offices around the world. The company is specialised in providing services in all aspects of real estate transactions. Consultancy, leasing, sales and assessments are the core competences of Engel & Volkers. The company is expanding on the basis of its successful licensed partner system. Its success is due to specialisation in submarkets and the highly-qualified partners and employees who ensure optimum service quality. The fast-growing network consists of over 200 shops in the high-quality residential real estate sector and 25 commercial offices that handle the sale of corporate, retail and industrial real estate, investment properties, residential and commercial buildings and real estate portfolios.

    
    For further questions, please contact:

    Engel & Volkers
    Princess Bettina Wittgenstein
    Stadthausbrucke 5
    D - 20355 Hamburg
    Tel.: +49-40-36-13-11-20
    Bettina.Wittgenstein@engelvoelkers.com

    Engel & Volkers Southampton
    Laura Bennett
    20 Main Street
    Southampton, NY 11968
    Tel.: +1-631-287-9260
    Laura.Bennett@engelvoelkers.com