Value of NYC properties could again exceed $1 trillion for upcoming fiscal year

Brooklyn largely propelled a massive increase in property values across the city, and the total tentative market value for properties assessed by the city’s Department of Finance (DOF) revealed a 8.74 percent increase from last year, The Real Deal reports. That total number for the upcoming fiscal year stands at a staggering $1.16 trillion with Brooklyn largely contributing to the increase.

That doesn’t come as much of a surprise with all the recent market reports revealing that Brooklyn’s home prices had hit record highs in 2016. The assessment on multi-family rental buildings and one, two, and three-family homes increased 19.05 percent and 13.77 percent from the previous years, and the sharp increases did not spare commercial properties either with the assessment on those increasing 13.49 percent.

As TRD rightly points out, this particular assessment is carried out by the DOF for tax purposes and is not to be confused with the true market value which tends to be lot higher.

Some experts however feel that there’s a trend of over assessment on part of the city, and that this is further contributing to people being priced out from their neighborhoods and small businesses being forced to shut down or relocate. Some have even questioned whether this is done in a totally arbitrary manner by the Mayor’s office.

A spokesperson for the DOF told TRD that the allegation was completely untrue and that these assessments were carried out by professionals and based on income and expense information provided by property owners. They do have the right to challenge these assessments though and have until March of this year to do so.

• Welcome to the $1.16 trillion skyline [TRD]
• Brooklyn home prices hit record highs [Curbed]