Foreign Real Estate Investors Starting To Tap Into New York
Things are starting to get better for the U.S. real estate market as top cities are starting to get attention from foreign investors. A survey from a Washington, D.C.-based company reveals that foreign investment dollars are, indeed, helping revive the real estate market [1].
The Association for Foreign Investment in Real Estate, or AFIRE, has released the results of its Wisconsin School of Business’s James A. Graaskamp Center for Real Estate-conducted 19th Annual Survey. Administered during the last quarter of 2010, the survey had the 180 AFIRE members as respondents. The members, who represent 21 nations, have $627 billion of global real estate – $256 billion is in the U.S.
Of the respondents, more than 60% thinks the United States has the best potential for capital appreciation – this is the highest positive response for the U.S. since 2000 when the question was first asked. In 2006, the response rate for the U.S. came in at a record low of 23%. Even the number of investors who are planning to put more capital in the country for 2011 registered an increase at 72%.
AFIRE chief executive James A. Fetgatter says of the good response, “As the fear of a double-dip recession has faded, investors are becoming more enthusiastic about the prospects for the U.S. economy and are taking aim at real estate investment opportunities in the U.S.”
The positive outlook, though, is centered largely in key cities New York and Washington, D.C. Still, analysts say, it is quite a feat to push London to the number three spot in foreign investors’ choice for real estate in 2011 as New York City has done this year. Since 2001, London has always been 1st or 2nd – Washington, D.C. placed 2nd this year. Other ranking cities are Singapore, Hong Kong, Madrid, Sydney, and Los Angeles.
London may have recovered pretty fast from the global economic downturn, says AFIRE Chairman Ian Hawksworth, but investors are already expanding horizons. Foreign investors are starting to look at markets that have higher yields such as U.S. gateway cities.
AFIRE analysts warn, however, that the survey results are merely outlook at this time. The country has yet to wait for these investors to place their money where their stated interests are.
[1]http://www.ibtimes.com/articles/97020/20110103/real-estate-investment-market.htm
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