March 2017   Volume 43, Number 3      


Foreign Real Estate Investors Still Confident About U.S. Real Estate

According to a recent survey from the Association of Foreign Investors in Real Estate (AFIRE), foreign investors continue to view U.S. real estate as a sound investment.

This year, 95 percent of survey respondents said that they plan to “maintain or increase” their investments. U.S. real estate was also ranked first by survey respondents for security, stability and opportunity for capital appreciation. In addition, investment opportunities in U.S. real estate have increased, with investors preferring industrial properties as the top investment type, over multifamily properties.

Foreign investors are also becoming increasingly confident in emerging U.S. real estate markets, such as Charlotte, N.C. and Nashville, Tenn. Fifty percent of respondents also reported that they believe Brexit will have a positive impact on U.S. real estate. However, some investors are uncertain about political and economic changes in the U.S. as a result of the new presidential administration.

“As uncertainty rises with a new government in Washington and interest rates that have risen dramatically, it is no surprise that investors have signaled a note of caution,” says James A. Fetgatter, CEO of AFIRE. “Previous, comfortable spreads between cap rates and interest rates have narrowed, making the investment criteria more selective and difficult. Increased market research and discipline will be required.”

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In this issue:

How Trump’s Tax Plan Will Impact Real Estate

Average Real Estate Commissions Decline to Low 5 Percent Range

Consumer Sentiment Declines in January but Remains Near 13-Year High

Foreign Real Estate Investors Still Confident About U.S. Real Estate

Mortgage Applications Decline 12 Percent to End 2016

New Report Names CEO of Zillow as Most Powerful Person in Residential Real Estate

Rising Home Values Haven’t Shaken Consumers’ Memories of the Financial Crisis

U.S. Real Estate Sales Could Be Affected by China’s Capital Controls

Trump Administration Suspends Mortgage Premium Rate Cut

Keep an Eye Out for At-Risk Senior Clients


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