U.S. Scores High on Property Investment in 2012

Bangalore: After being hit badly by recession, U.S. still manages to remain the top choice for the investors in commercial real estate sector. The country offers most stable and secure market in demand and supply industry. As per the 20^th annual survey conducted among the members of Association of Foreign Investors in Real Estate (AFIRE) , the best property to invest in U.S are Multifamily (such as apartments and duplexes ) then comes Industrial, Office, Retail and Hotel. The reason behind this strong market is because of improved property fundamentals, which is nothing but the negotiations, how to value a property and the finance aspects; commercial real estate (CRE) globalization wherein the economy is gradually improving which attracts foreign investors to invest on attractive opportunities and repeal of Foreign Investment in Real Property Tax Act (FIRPTA).

U.S. remains the best option for capital investors as they get high return of investment (ROI). As per the survey conducted by Wisconsin School of Business, the percentage has gone down to 42.2 percent compared to previous year. The survey conducted included investors who have more than $874 billion global investments in real estate sector out of which $338 billion in U.S.

 “Foreign real estate investors have made clear there is considerable pent-up demand for U.S. real estate awaiting better real estate fundamentals and relief from FIRPTA regulations,” said James A. Fetgatter, chief executive officer of AFIRE. “If the investing environment improves, the U.S. is poised to return to its ‘safe haven’ status.” Stated in AFIRE’s press release.

Competing U.S., Brazil wriggled its way up to the second position in capital appreciation of 2012 survey. The commercial properties of Brazil has been providing stable and secure market like the U.S for global investors and adding to it, is the rise of Sao Paulo city in Brazil which has been rated as the best place to invest for real estate. The other country is China, which scored third position in the survey.

“Cross-border investors still regard North America and Europe as being the most stable and secure markets,” added Barbara Knoflach, chief executive officer, SEB Asset Management AG, and AFIRE’s newly elected chairwoman. “But with foreign investors having a diminished confidence in the recovery, interest is broadening and emerging markets are attracting more notice.” Stated in AFIRE’s press release.

The AFIRE survey report 2012 analysis summarizes that the top U.S cities for foreign investments are New York, Washington, Boston, San Francisco and Los Angeles; top countries in Stability and security are U.S., Canada, Germany, Australia and UK; and the top emerging markets are Brazil, China, Turkey, India and Vietnam.