by Jereco O. Paloma for rexe.com
Real Estate in the US seems like it’s heading toward a brighter future, as the country remained the top choice for foreign property investors, with New York leading the pack, a new survey showed.
A recent survey conducted by the Association of Foreign Investors in Real Estate (AFIRE), as reported by Bloomberg, showed the U..S will see an increase of influx of foreign property investors this year.
The result showed that at least 64 percent of the surveyed investors said they might increase their investments into the U.S. property market, while the remaining 31 percent said they’re keeping their current investments as is. None of the investors surveyed said they would decrease their current holdings in U.S. real estate.
Jim Fetgatter, AFIRE CEO, said the survey result showed a strong message for the industry. With other leading foreign real estate destinations on the brink of crisis, the U.S. real estate market emerged as a viable destination for foreign real estate investments. The U.S. property market also provides a safe haven for foreign investors.
“This is a very strong response. The U.S., at the moment, really is the safest place for them to go. [The U.S.] simplifies the investment process and opens up a lot of opportunities for structuring their deals in a different way,” Fetgatter was quoted as saying by Bloomberg.
The report, while citing data from the Real Capital Analytics Inc., added that last year, foreign real estate purchases hit a record-high since the Great Recession at $87.3 billion This is way above the $5 billion total foreign real estate purchases recorded in 2009, a year after the recession.
According to a separate report published by the International Business Times, Manhattan recorded an increase of foreign real estate purchases in 2015 totaling to $23.5 billion. The report noted that the forecasted increase of foreign presence in the U.S. real estate could be attributed to the legislation easing taxes on foreign pension funds in the country, which was approved last year.