America still comes out top for overseas property investment globally according to the latest survey from members of the Association of Foreign Investors in Real Estate (AFIRE).
A huge 95 per cent of investors who answered the survey confirmed that they will maintain or even increase investment in the USA.
Responsible for estimated property investment globally of over $2 trillion, AFIRE members give a good indication of popular places around the world for property investment.
The US came top in many categories, emerging as the most stable and secure country for property investment as well as providing the best opportunity for capital appreciation on investment made. The US retained top spot from last year in both categories.
New York was deemed the top global city for property investment for the seventh year running, and was joined once again in the top five by fellow US investment hot-spots Los Angeles and San Francisco.
Not all US cities fared so well however, with Washington DC continuing its fall from favour. The capital city of America hasn’t made the top five global cities since 2013 and dropped further from eighth the previous year to the lowly position of fifteenth this time.
Investors surveyed cited the America’s sustainable economic growth, strong rule of law, transparency, and relative overall security for investments as reasons for continued investment.
However, not all was rosy in investor’s eyes as a third (33 per cent) of those surveyed reported a more pessimistic sentiment about the US market, compared to just 8 per cent last year. 6 per cent were more optimistic, down from 8 per cent in 2016.
Chief executive officer of AFIRE, James A. Fetgatter, commented: ‘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.’
He continued: ‘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.’
New areas in the US for property investment came to light, with Boston climbing quickly up the ranks to one of the favourite US cities to invest in.
Many new smaller cities were also cited as having strong investment potential. Nashville, Portland, Charlotte, San Antonio, Madison, and Pittsburgh were all seen as having strong job growth and young, affluent populations, making them ripe for overseas property investors to benefit from.
It seems that no matter who is in government, America will always be seen as a safe and secure place to invest in property, with strong growth historically and continual stability.