Foreign Buyers to Turn Up the Heat in 2016
2015 was the year of the foreign investor, but data from the Association of Foreign Investors in Real Estate (AFIRE) says foreign buyers plan to throw even more cash into US real estate in 2016.
64% of those AFIRE surveyed plan to increase US property investments—around half of the group’s 200 members were surveyed.
AFIRE CEO Jim Fetgatter says China’s slowdown, Brazil’s recession and Europe’s immigration crisis have pushed members—who hold around $2 trillion in property globally—to the US as “the safest place for them to go,” Bloomberg reports.
Real Capital Analytics data shows foreign buyers inked $87.3B in deals during 2015, up from under $5B in 2009—led by trophy buys like the Waldorf Astoria (pictured).
Foreign buyers got extra incentive for US investment with the new FIRPTA tax break signed in December.
The AFIRE survey puts NYC as the top market worldwide, followed by London and LA, with multifamily and industrial buys being the top targets. [Bloomberg]