02/05/2010

Increase in support for US property from foreign investors

Foreign investors in real estate say they remain committed to the U.S. as their preferred real estate investment opportunity. The sentiment is underscored by a dramatic increase in the number of respondents identifying the U.S. as the country providing the best opportunity for real estate capital appreciation, according to the results of the 18th annual survey conducted among the members of the Association of Foreign Investors in Real Estate (AFIRE).

The survey was conducted in the fourth quarter of 2009 among the association’s nearly 200 members. Survey respondents own more than $842 billion of real estate globally including $304 billion in the U.S. The survey was conducted by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business.

  In this year's survey:

  --  51 percent of respondents identify the U.S. as providing the best

      opportunity for capital appreciation;

  --  this compares to 37 percent in 2008, 26 percent in 2007, and 23

      percent in 2006;

  --  the last time respondents' perceptions for U.S. real estate were this

      strong was in 2003, when the percentage once again reached 51 percent.

  --  two thirds of respondents plan to increase their investment in the

      U.S. in 2010 compared to 2009;

As they did last year, survey respondents also express a firm interest in multi-family as their preferred property type followed by office, industrial, retail and hotel properties.

Survey respondents have also pushed their projections for the recovery of the U.S. commercial real estate market back by six months:

  --  in the June 2009 mid-year survey, half the respondents said they

      expected recovery by or before the second quarter of 2010;

  --  in the 2010 annual survey, half the respondents say they expect the

      recovery by or before the fourth quarter of 2010.

But, optimism about the state of the U.S. real estate market remains strong:

  --  33  percent of survey respondents say they are more optimistic about

      the U.S. real estate market than they were in June 2009;

  --  63 percent say their perspective has not changed;

  --  6 percent say they are more pessimistic.

AFIRE members have a common interest in preserving and promoting investment in cross-border real estate. Founded in 1988, AFIRE currently has nearly 200 members representing 21 countries.

Source: Reiclub  P Mosca

P4P Comment

The above report expresses the views of some heavy duty foreign investors in USA who are, no doubt, backing their views with cash. A key comment is:

“the last time respondents' perceptions for U.S. real estate were this  strong was in 2003, when the percentage once again reached 51 percent”

Our special focus is on American foreclosed properties and it is inevitable that the huge quantity being released by the Banks will tail of. In fact, supply has been tightening for some months now.

And the forthcoming reduction in US government support to the Banks will most likely mean  the Banks have to get higher prices for their foreclosed property, meaning a quicker end to the very low prices we offer on this site.