According to a survey by the Association of Foreign Investors in Real Estate (AFIRE), the number of foreign investors currently involved in the Seattle real estate market could ratchet up in 2016. An influx of capital from China, Germany and other countries is to be expected.
The survey results which were released last Monday revealed that Seattle is back on the top five list of property markets that spark interest among foreign investors. It is only the second time that it has made the top 5 and the first time since 2006.
AFIRE's survey also revealed that foreign investors prefer to invest in apartment and industrial property, followed by retail, office and hotels.
Last year, Seattle has already seen a growing interest from foreign buyers. In August, Hong Kong-based Gaw Capital Partners bought Columbia Center which is the Northwest's tallest skyscraper. The company bought the property for $711 million marking the first time a big Asian investment firm landed a trophy tower in the city. Several weeks after, Gaw Capital Partners bought another skyscraper, the 27-story Seattle Tower.
In November, Pacific Eagle US Real Estate Fund bought the 15-story Dexter Horton Building in Seattle for $124.4 million. And just last month, Germany's largest real-estate fund managers paid $299 million for an office complex it developed and leased to Amazon.com.
Union Investment executive Martin Bruhl pointed out that Seattle is an attractive investment opportunity for foreign investors because it is one of the fastest-growing cities in the United States. Bruhl also noted that Seattle largely attracts the young and well-educated.
On the other hand, Chief of Washington, D.C.-based AFIRE James A. Fetgatter said that the country itself is an attractive investment opportunity and not just Seattle. He noted that the real estate fundamentals are currently sound and the economy continues to remain strong.
