Foreign real estate investors across all sectors are looking to the United States as one of the hottest investment markets for industrial, office and multifamily real estate.
Even as New York dropped from its No. 1 spot, falling to London, the next four hottest markets for foreign investors in the survey from the Association of Foreign Investors in Real Estate were American cities. New York took the second spot, followed by San Franciso, Houston and Los Angeles.
"Our members’ increasing interest in cities beyond the powerhouses of New York, Washington and San Francisco points to the recognition of additional investment opportunities for foreign investors," said James A. Fetgatter, chief executive, AFIRE. "However, there is no question that some relief from burdensome and complicated FIRPTA laws will be necessary to turn that interest into meaningful investments."
The survey of AFIRE members said that the United States is the most "stable and secure" country for real-estate investment "by a wide margin." Survey respondents also said that the United States is also the best market in terms of capital appreciation and for real estate purchases in 2014.
Foreign buyers had scooped up $68.2 billion of single-family homes in the United States, or about 7% of all home sales, in the 12 months that ended March 2013. That's according to the National Association of Realtors' latest survey on foreign buyers.