Real estate sales in the Upper East Side had been lagging for quite some time. When sales began to pick up in the second half of 2013, at around the time when the last of the underground blasts for phase one of the project took place, the reason became evident. The completion of the Second Avenue subway was becoming a reality. In varying stages of planning for almost a decade, the Second Avenue subway has a date for completion – the end of 2016. That projected date is the factor that many real estate agents are connecting to the sudden rise in property sales.
The Second Avenue subway will run from 125th to Hanover Square. With the Lexington line, the only subway line serving the upper east side, stuffed to capacity, the Second Avenue subway promises riders a welcome relief. With the T line, as it’s been dubbed, giving riders some breathing room, it is also opening up a new found interest in the area to potential homeowners. Perhaps the industry that will feel the greatest effects from the Second Avenue subway’s completion will be the real estate industry.
Real estate brokers, as well as developers, are seeing a growing interest in properties in the area because of the continuing progress on the Second Avenue subway. This growing interest is expected to result in an increase in not only condo and co-op prices but property values as well. Where buyers once side stepped properties in the area for lack of convenient subway lines, keeping area prices at a low, potential buyers are now eager to buy in the area.
A condo east of Third avenue in the upper east side typically sells for almost twenty percent less than a condo in the ‘heart’ of the upper east side. It’s the belief of many real estate brokers that the the nearing completion of the subway is already closing the gap.Recent sales reported for condos on Third Avenue have reflected an increase of eleven percent from the previous year, slightly above but still less than what was reported in the ‘heart’ of the upper east side. Sale prices for co-ops are also reflecting an increase in price per square foot.
As the noise and commotion of the Second Avenue subway construction fades in the distance, residents in the upper east side east of Third Avenue are literally seeing light at the end of the tunnel. In that light increasing property values, rents and sale prices are shining in the renaissance of Second Avenue.