Foreign investors bought more U.S. real estate in the second quarter as they sought a safe haven from euro uncertainty, according to Jones Lang LaSalle research.
More than $47 billion in foreign money purchased stateside homes in the three months ending June 30, up 33% from the previous quarter.
Miami, Minneapolis and Phoenix were the newest markets to reach the top-ten foreign interest destinations. New York, San Francisco and Washington, D.C. remained in the top-three with more than $1 billion used to purchase Big Apple properties.
‘Core U.S. real estate throughout primary and many secondary cities remained very attractive to both domestic and foreign investors, based on absolute initial yields on offer, and their spread over record-low Treasury rates,” said Josh Gelormini, vice president of Americas research at Jones Lang LaSalle. “The U.S. is also benefitting from a safe haven strategy, as other global markets appear on shakier ground, particularly given the ongoing euro zone crisis.”