UW-Madison Reports US Is Top Choice For Foreign Real Estate Investors
January 12th, 2011
Despite the real estate market crash, the United States real estate market seem to have done something right – foreign investors are looking at putting their money in the country’s real estate market this year. Though most of them choose to invest in just choice cities, the news is still welcome to investors and analysts in today’s real estate market. UW-Madison’s James A. Graaskamp Center for Real Estate has released its 19th annual foreign investors survey and it reveals that foreign investors believe that the US market is now offering better opportunities than ever before[1]. The respondents are “big investors” who own $627 billion-worth of real estate in the world, $265 billion of which are in the U.S.
Survey results show that more than half of the respondents said that capital appreciation is best seen in the United States. Registering a margin of 54 percentage points over second placer China, the United States made a big turnaround from the record-low response of 23% in 2006. Investors, though, are not entirely optimistic. Their focus is not on the country in general, but honed in on key cities like New York and Washington, D.C. Boston, San Francisco, and Los Angeles are also attractive cities for foreign investors. Compared to 2010, foreigners are more likely to put more capital in the U.S. this year.
Association of Foreign Investors in Real Estate’s chief executive James A Fetgatter said, “As the fear of a double-digit 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. [Hpwever] their strategy is more akin to a rifle than a shotgun. Except for multi-family housing, (investors) are not scattering their interest throughout the U.S., but (are) rather narrowly targeting (the majority) of it to New York City and Washington, D.C., to an even greater extent than previous years.”
[1]http://host.madison.com/wsj/business/real-estate/article_613e7146-1a9d-11e0-9c8f-001cc4c03286.html
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