The US is the most desirable location for real estate investing, according to a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE) and the Wisconsin School of Business.
The AFIRE found that 64% of real estate investors expect to have modest or major increases in their US investments in 2016, while another 31% planned to maintain or reinvest their investments. No one said they planned a major decrease.
“The investment opportunity is the United States, itself,” said James Fetgatter, chief executive of AFIRE. “The real estate fundamentals are sound; the economy continues to remain strong; there are opportunities across all sectors of the real estate spectrum.”
A majority of respondents (60%) said the US provided the most stable and secure real estate investments. It was also ranked as the best country for capital appreciation opportunities, endorsed by 46% of respondents.
“In an environment that is regarded both as the safest and the most secure in the world, with a strong currency and the best opportunity for capital appreciation, the US is the safest harbor,” Fegatter said.
While the US may be the most secure market, it is also among the most expensive: 80% of respondents said it was difficult to find attractive US real estate opportunities.
“Foreign capital continues to view the US as the safe haven that it is typified by stable, albeit expensive markets,” said Frank Lively, AFIRE chairman and executive vice president of Wafra Investment Advisory Group. “Investment in cities such as New York, Los Angeles, and San Francisco… have and will continue over time to reward cautious and careful institutional investors with the best risk-adjusted returns for their real estate capital.”
New York ranked as the top city in the world for real estate investments, with Los Angeles and San Francisco also scoring in the top five. Washington DC, Seattle, and Boston were also chosen as attractive locations for investment opportunities in the US.