According to the Association of Foreign Investors in Real Estate (AFIRE), more foreign investors are interested in U.S. real estate than at any time since the firm began surveying investors in 2000. Members of the survey hold more than $265 billion in U.S. real estate and $627 billion globally. The data collected from survey respondents ranked interest in the U.S. four times higher than the second ranked county, the United Kingdom. In fact, 72% of respondents said they are planning to invest more capital in the U.S. in 2011 than they did in 2010 and most believed that our domestic property markets offer the best investment return potential in the world. That being said, investors are focusing their interest almost exclusively in a half-dozen major metropolitan areas, especially New York City and Washington D.C. As CoStar Group Director of Advisory Services Hans Nordby put it, these investors “don’t take connecting flights.” James A. Fetgatter, the CEO of AFIRE, put it another way: “their strategy is more akin to a rifle than a shotgun.”
Multi-family property continues to remain the asset class of choice followed by retail, hotels, office, and then industrial. Brazil displaced China as the number one emerging market of choice (China was second), followed by India, Vietnam and Mexico.
If you would like to speak to a member of our team about investment opportunities in Manhattan or Brooklyn, please call (212) 400-4838 or e-mail yourkeytothecity@AkerlyRE.com.
- Vietnam realty joins global leaders (lookatvietnam.com)
- Foreign direct investors return to the real estate market (lookatvietnam.com)
- NY office market pulls further ahead of rest of US (reuters.com)
- China Property Prices Rise for 19th Month; Property Stocks Fall (businessweek.com)