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New York City remains top destination for overseas investment 

Avner Motaev writes about overseas investment in the famous US metropolis.

News that there will be more foreign investment in New York City, as well as the USA at large, has led me to look further into the reasons behind the change and conclude upon them.

Rising investment

Avner Motaev
Times Square, Manhattan

According to the Association of Foreign Investors in Real Estate (AFIRE), over 60% of respondents to their recent survey said that they intended to increase real estate investments in the United States, both by modest and major amounts.

Potential reasons behind the rise were explained by Jim Fetgatter, AFIRE’s chief executive, in a phone interview. He said:

the U.S., at the moment, really is the safest place for them to go.”

This statement reflects investor’s less-than-positive attitude towards other regions across the world such as China (facing economic uncertainty), Europe (facing a migration crisis) and Brazil (like China, facing economic uncertainty).

The trend isn’t recent either, as research has shown that cross-border investment in the USA has risen since the Great Recession of 2008-9.

Outside the USA

Other than the USA, the British capital London also ranked highly among investors in regards to investments. German capital Berlin also ranked highly, in fourth place behind New York, Los Angeles and London.

The preferred types of property for investment in the USA were multi-family accommodation and industrial real estate.

The investment will be further spurred on by recent changes to US tax law, according to Jim Fetgatter.

In conclusion interest in US real estate, especially in major hubs such as New York, LA and San Francisco, is rising. It may well be the 2016 is a key year for real estate in the United States.

AvnerMotaev

Avner Motaev is the director of Mobile2Business, a provider of telecommunications solutions to businesses in Austria. Mobile2Business is an official business partner of T-Mobile.

Published in Avner Motaev Investment