Is Strong Sentiment for Capital Appreciation Finally a “Buy” Signal?

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January 18, 2010

Foreign investors in real estate remain committed to the U.S. as their preferred real estate investment opportunity, according to the results of the 18th annual survey conducted among the members of the Association of Foreign Investors in Real Estate (AFIRE). I am not sure about this AFIRE! Canada barely appeared in their survey, despite our stable economic climate and our strong real-estate market place.

The survey was conducted in the fourth quarter of 2009 among the association’s nearly 200 members. Survey respondents own more than $842 billion of real estate globally including $304 billion in the U.S. The survey was conducted by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business.

According to the survey:

– 51 percent of respondents identify the U.S. as providing the best opportunity for capital appreciation;
– this compares to 37 percent in 2008, 26 percent in 2007, and 23 percent in 2006;
– the last time respondents’ perceptions for U.S. real estate were this strong was in 2003, when the percentage once again reached 51 percent;
– the U.K. emerges as the second‐best country for capital appreciation, receiving 30 percent of respondents’ votes;
– in third place, China receives 10 percent of respondents’ votes.

So, if the US is so strong, where are the best places to invest?
1. Washington, D.C.
2. New York
3. San Francisco
4. Boston
5. Los Angeles falls one spot into fifth place.

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