U.S. Real Estate In General – And Miami In Particular - Looks Better Than Ever To Foreign Investors
March 28th, 2011
According to the Association of Foreign Investors in Real Estate (AFIRE), the U.S. real estate market is looking the best for foreign investors that it has in a decade[1]. And according to Tere Blanca, the CEO of Blanca Commercial Real Estate in Miami, Florida, Miami’s strong international trade presence will likely expand throughout the next decade and contribute to a spike in foreign appetite for real estate investment in that region. Blanca credits Brazil’s rising GDP with much of Miami’s good fortune. “Wealth creation in Brazil is now starting to look for cross-border opportunities, and Miami certainly is a natural,” she explained. However, Blanca believes that failure to invest in certain attractive city assets now – like high speed rail and transportation solutions – could hurt the city’s chances. She noted that right now, Miami is “being identified and recognized by other foreign capital as a place to explore,” but emphasized that any area of the U.S. hoping to attract foreign investors in real estate have to make “the right investments” in their own real estate in order to attract others.
Not surprisingly, real estate analysts hope that commercial real estate investor interest will bleed into other areas of the market[2]. Greater Downtown Miami’s condo supply is still vastly overstocked, although developers in the area are working to change the appeal of the area to attract more renters as well as owners. Given the oft-stated “oversupply” of real estate in the country at the present time, it seems like foreign investment money could resolve a lot of problems for the U.S. housing market. Do you think that foreign investors hold the key to a real estate recovery in the commercial sector? How about the residential market? Both?
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[1] http://www.globest.com/news/1879_1879/miami/308387-1.html
[2] http://www.miamiherald.com/2011/03/28/2134620/fort-lauderdales-little-secret.html
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