James Fetgatter, AFIRE chief executive, says that this is the first time the consensus is so strong. New York and San Francisco have solid first and second place positions. Boston and DC have respectable third and fourth places. Beyond that, no other cities come close, he says.
Foreign investors continue to favor office buildings as the preferred investment for 2001. Multifamily properties took the number two spot while retail properties slipped from second place into fourth. They are least likely to invest in hotels, according to the survey.
The survey also reveals that while 90% of the investors say they will either increase or maintain their 2000 level of investment in US real estate this year, 10% say they will decrease. The US is still considered the most stable and secure real estate investment. Along with Japan, the US was voted as having the best opportunity for capital appreciation.
The survey also cautions about a potential change in German investments. Germans have been among the largest investors in US real estate, AFIRE officials say. But that could change. The falling Euro, increasing technical investment opportunities, and the shift away from a buyer's market are attributed to an anticipated 10% reduction in German investment dollars.
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