The 17th annual AFIRE survey shows strong Interest In US Real Estate.
1. Foreign real estate lenders say they plan to increase lending by 58% in the U.S. in 2009.
2.
Equity investors plan to increase investment activity by 40 percent
globally and by 73% in the U.S. according to the results of the 17th
annual survey
Preferences
D.C.
trumps New York as the top global city for foreign investment. London
and New York were second and third position for foreign investment
interest. Five of the top ten cities were American and the U.S. was
ranked as the country with the most opportunity for capital
appreciation.
US Real Estate Trends
Our
system certainly can surprise, but politically, we are very stable.
There is a great deal of faith in our ability to adjust and change.
AFIRE members surveyed find the U.S. continues to provide both the most
stable and secure real estate investment environment and the best
opportunity for capital appreciation.
This year, foreign
investors are eying the multi family sector, followed by offices,
industrial, retail, and hotel properties. US property is showing signs
of an approaching price equilibrium and the dollars decline has made
real estate even cheaper for foreign investors. Fed assurances that
interest rates will remain low until a full blown recovery virtually
assures an inexpensive dollar and once in a generation opportunity for
foreign investment.
NAR reports International investors bought
154,000 homes and condos in the 12-month period ending in May, down
nearly 10% from 170,000 for the same period a year earlier.But Since
June, the dollar has tumbled by 9 to 11% against currencies like the
Japanese yen, the Euro and the Canadian dollar. Florida leads the
country accounting for 25% of foreign purchases, followed by
California, Texas, and Arizona.(via AFIRE)
Green Matters
When
asked to what extent a building’s green attributes influenced their
decision to purchase a property, 11 percent said significantly so, and
60 percent said somewhat so. In almost the exact same percentages,
investors said that green attributes were worth a greater rental
premium. This was the first survey in which these two questions were
asked. (Via AFIRE)