New York City regained its status as the top choice of global commercial real estate buyers, unseating London and highlighting the appeal of US properties in general, according to a survey of international investors.
More than 90 percent of respondents said they planned to maintain or increase the size of their US portfolio this year, Reuters reported, citing the survey conducted by the Association of Foreign Investors in Real Estate. AFIRE members have an estimated US$2 trillion in real estate assets under management.
The United States was voted the most stable and secure country for investment, outdoing both second-place Germany and third-place United Kingdom. Foreign investors also chose the US as the best place for capital appreciation, outperforming second-place Spain and third-place UK.
Looking forward, two thirds of investors said they expect China to become the largest source of capital into the US in 2016 and beyond.
In the US, investors’ top pick of New York was followed by San Francisco, Houston, Los Angeles and Washington, DC, respectively.
“As it periodically has been in the past, the United States is currently the target of much of the foreign investment in real estate globally,” said Thomas Arnold, head of Americas-Real Estate at Abu Dhabi Investment Authority and chairman of AFIRE.
“With a stable and transparent market and an economy that appears to be steadily improving without the fits and starts experienced in other regions, the US has become the first stop for foreign real estate investors. And with the continued creation of wealth in China, it is not surprising that they, along with other nationalities, are voting with their ‘dollars’.”
After second-place London and No. 3 San Francisco, Tokyo and Madrid rounded out the top five cities globally, the report said.
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