Best deal in the world? BUSINESS
26 | BUSINESS USA Viewpoint WORDS | Cindy Fauth
Overseas property investors regularly approach their real estate agents to fi nd that elusive investment opportunity, the deal that will yield the best possible return on investment. OPP’s columnist at the National Association of Realtors has been looking at some brand new research that indicates that it might be a good idea to point your clients in the direction of the USA if they want to get good growth in the next few years.
estate market was ranked the No. 1 choice for investment this year and viewed as the best opportunity for price appreciation, according to a survey of foreign investors by the Association of Foreign Investors in Real Estate (AFIRE). More than 60% of respondents
D
indicated that the U.S. offers the best potential for capital appreciation across all types of property. This number is a
“America’s real estate markets are fl attening out, with modestly improving fundamentals expected during 2011”
dramatic reversal from 2006 when it reached a lowest level of 23%. The next-ranked country, China, was 54 percentage points behind the U.S. “As the fear of a double-dip
recession has faded, investors are becoming more enthusiastic about the prospects for the U.S. economy and are taking aim at real estate investment opportunities in the U.S.,” said James Fetgatter, AFIRE chief executive.
The survey respondents
represent more than US$627 billion in real estate globally, including US$265 billion in the United States, and 72% of them say they plan to invest more capital in the U.S. in 2011 than they did in 2010.
U.S. Economy Health Update
espite the sluggish economy of the past two years, the U.S. real
In terms of overall economic health, the U.S. real estate market is maintaining moderate positive momentum. According to the most recent forecast from the National Association of REALTORS®, the country’s real estate markets are flattening out, with modestly improving fundamentals expected in 2011. Lawrence Yun, NAR chief
economist, said all of the big real estate sectors appear to be stabilizing. “The basic fundamental of rising lease demand, resulting from a steadily improving economy, means overall vacancy rates have already peaked or will soon top out,” he said. “The outlook for the office and industrial markets has moderated with modestly declining vacancy rates expected as 2011
Country providing the best opportunity for capital appreciation 2010
60%
www.opp.org.uk | FEBRUARY 2011
30%
0%
Source: AFIRE & NAR
Ranking of global cities for real estate investment 2011
25%
15%
5%
Source: AFIRE & NAR
NEW YORK
WASINGTON D.C. LONDON PARIS
SHANGHAI SINGAPORE HONG KONG MADRID SYDNEY
LOS ANGELES
USA CHINA UK BRAZIL AUSTRALIA FRANCE
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