Photo: Robert Clark
Move over, Big Apple, and make way for Los Angeles.
The two uber-hot housing markets are now tied for the first time as the leading US cities for foreign real estate investment.
The Big Apple also slipped from the top spot as the leading global city for foreign real estate investment, according to a recent survey of members of the Association of Foreign Investors in Real Estate (AFIRE).
AFIRE members are among the largest international institutional real estate investors in the world and have an estimated $2 trillion or more in real estate assets under management globally.
NYC reigned as the top US city for foreign investment for the last seven consecutive years, ahead of Los Angeles by a “substantial margin” until 2016.
Los Angeles moved into the number two position last year, although globally Los Angeles’ position remains unchanged from last year in the fourth position — behind London, NYC and Berlin, which round out the top three.
Last year London was in the third position globally, thwarted by concerns over how Brexit might impact the market. A short year later, the London market has seen “several large sales” and continues to offer a stable rule of law, transparency and use of the English language — all of which make it a prime location for foreign investment, says AFIRE.
“A year later, foreign investors are less concerned about the ramifications of Brexit,” says AFIRE chairman Edward M. Casal in the report.
Also, unlike NYC, London offers a favorable time-zone for conducting international business.
San Francisco — which had placed in the top five global cities since 2011 — fell into 11th place this year. At the same time, Washington, DC dropped from 15th place last year to 25th this year.
Overall, the US remained as the prime stable country for foreign investment, voted for by over 58 percent of respondents. Germany and Canada rounded out the top three, their positions also unchanged from last year.
Some 86 percent of respondents said they plan to maintain or increase their investment in US real estate in 2018.
Click here to read the entire report.