US Remains Safest Environment for Foreign Investment

WASHINGTON, DC-While the US still holds the position as the strongest and safest location for international commercial real estate acquisitions, foreign investors will increase their activity in Western Europe and the UK in 2006, according to a survey just released by the Association of Foreign Investors in Real Estate. According to the report, which surveys Afire’s 175 members located in 17 countries across the globe, investors’ plans for property acquisitions this year in the US will drop 8% from 2005 to 47%.

The slight change, Afire leaders say, is the result of the commercial real estate market’s further globalization. Still, Afire estimates that its members’ procurement in the US is expected to reach $19 billion this year. Germany will remain the lead investor among international real estate buyers, but Australia will tighten the gap by providing 40%of the estimated investment. Germany is expected to provide 49%.