Foreign Investors More Confident on the Outlook of U.S. Real Estate
Foreign investors forecast a better year for the real estate market of the United States. Businessmen are expected to invest more in 2009 compared to the previous year.
According to a survey of the Association of Foreign Investors in Real Estate, loans from real estate lenders are fore casted to increase by as much as 58% in the United States and around 54% globally. Based on their data, activities of investors in the market are expected to increase by 73% in the U.S. and about 40% across the globe.
Members of the association are looking forward to more sound investment fundamentals in 2009 compared to the previous year which forced most investors to be guarded because of the market uncertainty.
The United States topped as the country with the most stable investment environment with a good potential for capital appreciation. Next on the list are Germany, U.K., China, and Japan.
Statistics collected show that Washington D.C. is the best place in the world for investors in the real estate market. Other global cities in the list are London, New York, Shanghai, and Tokyo.
The survey conducted also revealed important findings:
- India and Brazil are considered to be among the top emerging real estate markets.
- Respondents of the survey prefer properties which have features that are friendly to the environment. It is a convincing factor for a premium rent or purchase.
- In the U.S., the No. 1 preferred investment properties are apartments. Next on the list are offices, industrial, retail, and hotel.
The survey was conducted was among 200 members of the association who own $1 trillion of real estate properties around the globe and about $371 billion in the United States.