Many overseas investors are expected to put additional money into the properties of the US this year than investors did previous year, as New York staying at the top position as the target market globally. This was told as per the survey by Association of Overseas Investors in Real Estate.
Around 64% of respondents had told that they had intended to make a vital increase to their investments this year in the US while 31% are expected to maintain holdings or reinvesting the sales proceeds into other assets of the US. This was told by the AFIRE. None of respondents had planned a key decrease. Around half of the group’s 200 members had participated in this survey.
The slowdown in China’s economy, recession in Brazil and immigration crises in Europe emphasized the overseas investors that the US at the moment, is the safest place for them to visit. This was said by Jim Fetgatter, CEO, AFIRE.
The US real estate’s overseas purchases have increased since the year 2008, increasing to $87.3 billion of the completed deals previous year. The investors from Asia, Australia, Europe, and Canada, had bought the stakes in the office towers, apartment buildings, warehouses, shopping malls, hotels in search of comparatively superior yields.
The Real Capital information reveals that Manhattan had captured around $23.5 billion or 27% of the purchases for the year 2015.
As per the AFIRE survey, it has revealed that the US has also been ranked first for the nations with excellent choice for price appreciation in the year 2016, which was followed by Brazil, Ireland, Spain, and Britain.
In the survey, it was shown that London and Los Angeles were the second and third popular cities for the investment in the real estate. Berlin had jumped to fourth place; San Francisco and Paris are on fifth place.
According to Mr. Fetgatter, the present route of legislation that eases taxes for overseas pension funds that buy US real estate property would enhance the investment more. He also said that the latest law had simplified the process of investment and had opened up many chances for structuring their deals in a different way.