According to a survey by the Association of Foreign Investors in Real Estate, polling 200 members, 64% of those who respond said that they are intending to make major U.S. real estate investments this year. While 31% of the responders expect to maintain their holding or reinvest sales proceeds into other United States assets
Jim Fetgatter, chief executive of Association of Foreign Investors in Real Estate (AFIRE) notes that this is “a very strong response.” AFIRE members hold about $2 trillion of real estate globally. Jim also explains that due to the recent events of “China’s economic slowdown, Brazil’s recession, and Europe’s immigration crisis underscored for the international investigation, that the United States really is the safest place for them to go.”
Foreign purchases of U.S. Real Estate has increased from $87.3 billion of completed deals last year, from less than $5 Billion in 2009. Investors are purchasing stakes in office towers, warehouses, apartment building, shopping malls, and hotels searching for higher yields. The United States also ranked first for countries with the best opportunities for price appreciation in 2016.
According to the AFIRE survey the top cities for real estate investment includes:
Top Five Global Cities
1. New York (#1 last year)
2. London (#2 last year)
3. Los Angeles (#10 last year)
4. Berlin (#7 last year)
5. San Francisco (#3 last year)
The top five cities in the United States for real estate investment includes:
Top Five US Cities
1. New York (#1 last year)
2. Los Angeles (#4 last year)
3. San Francisco (#2 last year)
4. Washington, DC (#5 last year)
5. Seattle and Boston (#8 and #6 respectively last year)
The most recent passage of legislation easing taxes for foreign pension funds that buy U.S. real estate probably will boost investment further. The new law simplifies investment processes and opens up opportunities for structuring deals in different ways