New York returns to top spot for real estate investors

Posted by MarkL on January 13, 2015

New York has ousted London as the top spot for foreign real estate investment in 2014.

America's financial capital was the most attractive city for overseas investors, beating out London in second place and San Francisco in third. 

The rankings were compiled from a survey done by the the Association of Foreign Investors in Real Estate (AFIRE). 

Thomas Arnold, head of Americas-Real Estate Abu Dhabi Investment Authority and Chairman of AFIRE said in the report:

"As it periodically has been in the past, the United States is currently the target of much of the foreign investment in real estate globally.

"With a stable and transparent market and an economy that appears to be steadily improving without the fits and starts experienced in other regions, the U.S. has become the first stop for foreign real estate investors."

Houston was sixth place. 

In 2013 London was resoundingly the favourite destination for overseas investors, with 30 per cent of all the money invested heading to the English capital. However in 2014 that fell to 20 per cent and New York remained steady at 25 per cent of all money invested.

Those two cities though, with 45 per cent of the money invested dwarfed the other cities in the top ten, Houston had less than five per cent.

The report also showed that 90 per cent of respondents indicated they were planning on increasing their US portfolios. 

There were perhaps no surprises as to where most of the money was coming from - China. 

With many European economies struggling to shake off the effects of the global financial crisis and affairs in Russia having an impact the report said the outlook for US property investment was positive for this year and next. The US economy is widely tipped to have a bumper year in 2015 

AFIRE members have an estimated $2 trillion or more in real estate assets under management globally.