According to a recent survey, US real estate in 2016 will be popular with foreign investors. An article by Bloomberg Business says that foreign investors plan to spend more on US real estate than they did in 2015.
A survey by the Association of Foreign Investors in Real Estate, known as AFIRE asked investors about their investing plans for the next year. This was their 24th annual survey of their roughly 200 members, and about half responded. Sixty-four percent of respondents said they intend to make modest or major increases to investments in US real estate in 2016. 31 percent said that they expect to either maintain their holdings or reinvest sales proceeds to other US assets. Not a single respondent said they planned on a major decrease. The AFIRE survey also showed the US as first for countries with the best opportunity for price appreciation in 2016,
“This is a very strong response,” Jim Fetgatter, chief executive of Washington-based AFIRE, whose members hold about $2 trillion of real estate globally, said in a phone interview. China’s economic slowdown, Brazil’s recession and Europe’s immigration crisis underscored for international investors that “the U.S., at the moment, really is the safest place for them to go.”
Foreign investments in US real estate have been very strong recently. In 2009, foreign purchases of real estate here in the US was under $5 billion, and that soared to $87.3 billion in 2015, according to Real Capital Analytics Inc. Buyers from Canada to Australia and everywhere in between come to the US to buy real estate.
The new law that Fetgatter says “simplifies the investment process and opens up a lot of opportunities for structuring their deals in a different way,” also indicates that more foreign buyers will come flocking to US real estate in 2016.
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