Overseas Interest in US Real Estate on the Rise

WASHINGTON, DC-It appears that 2003 proved to be a banner year for overseas investment in commercial properties in the US. The District-based Association of Foreign Investors in Real Estate has just released its annual survey concluding that investment in the nation’s commercial real estate market by foreign entities increased by 59% in 2003. Garnering 60% of the vote, the US beat out other nations as the most stable country for such investment, leaving Canada and France to second place positions. And the good news is not expected to end there. Afire officials anticipate that 2004 will yield a nearly 12% increase over last year’s numbers.

“There’s no question that because of the current competition, deals are much harder to come by,” says Afire chairman Erwin F. Stouthamer. “However, there are pockets in the market where an investor prepared to take some risk will get a better reward for the investment.” As far as market sector interests are concerned, retail properties ranked at the top of the list last year, followed by multifamily investments. The most desirable cities in order of preference were Washington, DC, New York, Los Angeles, San Francisco and Chicago.