The latest annual survey from the Association of Foreign Investors in Real Estate (AFIRE) finds strong appetite for property in the US and Germany this year. The report also reveals that Brazil continues to rank second for capital appreciation and returns to the top spot as best emerging country for foreign real estate investment.
The 2018 survey, the 26th of its kind, carried out among AFIRE members provides an insight into the sentiments among the world’s largest property investors. The association includes some of the largest players in real estate investment and its member have an estimated US$2 trillion in assets under management across the globe.
Best for capital appreciation
One of the major factors to consider for foreign real estate investment is capital appreciation. In the 26th edition of the survey, AFIRE members rank the US as the best country in the world for this aspect of investment. In 2018, Brazil property investment also repeats its podium position in second place.
Completing the top five are China in third place, Spain in fourth and the UK in fifth. China and Spain both rise up the table – they tied in sixth place last year – and the UK slips from third.
Best cities for foreign real estate investment
For the first time in 11 years New York falls from pole position. In 2018, AFIRE members place the Big Apple in second place in favour of London, up two places. The capital of UK stands out as the world’s top spot for foreign real estate investment because of its favourable time zone, large employment pool and substantial sales during 2017.
Another first is the inclusion of two German cities in the top five. Berlin takes third position and Frankfurt makes its debut on the table in fifth place. Germany also ranks well in the ‘most stable and secure countries for foreign property investment’ category. It maintains second position with 20% of votes from AFIRE members.
In the section for best US cities for property investment, New York keeps its number one slot, a position it has held since 2011. But this year the top position is shared with Los Angeles, one of the biggest new players on the US real estate scene in 2018. San Francisco, on the other hand, has dropped out of the rankings to 11th place after seven years in the top five.
Best emerging countries
It’s all change in the table for the top emerging countries for foreign real estate investment in 2018. Brazil returns to prime position, up from 3rd last year, and ranks as the world’s best for investment.
China loses out in favour of Brazil and drops to second place. India rises one spot to third, ahead of Mexico, down from the number two spot in 2017, and Colombia. This Latin America country is a rising star for AFIRE members who have upped its rankings from 9th place last year.
Most secure countries for foreign real estate investment
Yet again, AFIRE members vote overwhelmingly for the US. The country takes a massive 58% of votes in the most stable and secure countries category. Furthermore, a massive 86% of members say they plan to maintain or increase their US property investment during 2018.
Behind the US are Germany and Canada, both of which repeat their 2017 positions. Completing the top five are the UK and Australia who swap places in the latest AFIRE survey.