NYC remains top foreign investment hub

by Ephraim Vecina02 Feb 2016
New York City stood tall as the leading choice for foreign investors who wish to use their capital in acquiring residential and commercial properties, according to the results of the annual survey conducted by the Association of Foreign Investors in Real Estate (AFIRE) on its members.
Outranking other prime destinations like London and Berlin, NYC represented what AFIRE saw as the most attractive characteristic of capitalizing on U.S. markets: the country as an investment opportunity, in and of itself.
“The real estate fundamentals are sound; the economy continues to remain strong; there are opportunities across all sectors of the real estate spectrum and in both gateway and secondary cities,” AFIRE chief executive James A. Fetgatter told the Boston Real Estate Times.
“The recent legislation bringing welcome relief from certain FIRPTA taxes should provide additional incentives for foreign investment into the US,” Fetgatter added. “In an environment that is regarded both as the safest and most secure in the world, with a strong currency and the best opportunity for capital appreciation, the US is the safest harbor.”
Aside from NYC, Los Angeles and San Francisco also ranked among AFIRE’s top five cities worldwide, with other strong locales such as Washington, D.C. promising consistency, stability, and generous ROI.
Out of AFIRE’s nearly 200 members, approximately 64% said that they will increase their investments in U.S. real estate this year, while 31% said that they would maintain or reinvest their assets.
Multifamily and industrial properties led the pack in terms of foreign investment in the U.S., with the retail, office, and hotel sectors also having strong showings.