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While the New York real estate market has largely come back from the crash, one small segment is doing better than ever: the ultraluxury segment, where homes cost $7 million and up.Some apartment prices in that market have recently doubled, and ultraluxury prices felt only a small “hiccup” compared to the bigger slump in the overall real estate market, Marc Santora reports for The New York Times.
Ultraluxury has been so successful because people shopping at the top of the market were largely unaffected by the crash, and new construction has remained relatively stagnant for the last few years, leading to increased demand, Santora reports.
A new wave of real estate development in the city will likely be tailored to the ultraluxury bracket, widening the already deep chasm between the wealthiest and everybody else, Santora writes. Think One57, a new 90-story development where the cheapest apartment is worth $7.35 million and the storage bins will cost more than a Mercedes.
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