Expect to find more foreign investors to put in more money into American properties this 2016 more than last year, in addition to New York being the sought-after market globally. These were the findings based on a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE).
According to Bloomberg, 64 percent of respondents claim that they plan "to make modest or major increases to investments in U.S. real estate this year."
On the other hand, 31 percent of respondents say that they will preserve their current holdings, or they would reinvest the proceeds from the sales towards more U.S. assets, as stated by the 24th annual survey from the institution.
Apparently, none of the survey respondents intend to make a major decrease in their real estate investments. Approximately half of the group's estimated 200 members were among the participants.
As it turns out, the lowering economic prospects of other countries are what's pushing foreign investors to look into real estate in America. The publication reports:
"'This is a very strong response,' Jim Fetgatter, chief executive of Washington-based AFIRE, whose members hold about $2 trillion of real estate globally, said in a phone interview. China's economic slowdown, Brazil's recession and Europe's immigration crisis underscored for international investors that 'the U.S., at the moment, really is the safest place for them to go.'"
According to Real Capital Analytics Inc., foreign investments on U.S. real estate have reached a peak since the financial crisis. In 2009, there were less than $5 billion completed deals, as compared to the $87.3 billion in 2015. Take a look at the data figures here.
Several investors hailing from Canada, Asia, Europe and Australia have bought several high-valued stakes in office towers, warehouses, apartment buildings, malls and hotels as they looked for higher returns. Manhattan was able to reel in $23.5 billion or 27 percent of the 2015 foreign purchases.
The U.S. also garnered the top spot for countries that have "the best opportunity for price appreciation in 2016." The survey further claims that Brazil, Spain, Ireland and the U.K. close the top five.
