The annual AFIRE survey reveals that yet again property investment in the US ticks all the right boxes for foreign investors. The survey also finds that the US and Brazil continue to offer the best opportunities for capital appreciation while Brexit has affected property investment in the UK and London.
The Association of Foreign Investors in Real Estate (AFIRE), whose members have an estimated US$2 trillion in real estate assets, brings together one of the largest groups of institutional property investors in the world. The AFIRE annual survey, carried out at the end of the year, reveals trends and sentiments among the world’s largest investors that broadly mirror those of 2015.
Stable and secure property investment in the US
The US continues to attract the lion’s share of investor confidence in 2017. A massive 95 per cent of AFIRE members said they would maintain or increase their property investment in the US this year. Unsurprisingly, the US tops the country listing for the most stable and secure investment environment.
AFIRE members listed several factors that inspire confidence in the US as a property investment location. These include “sustainable economic growth, strong rule of law, transparency and relative overall security for investments”.
Top ranking countries for investment security
Just below the US is Germany, a country that holds its second place position for another year. The capital Berlin ranks second in the top 5 global cities, two ratings that reflect investor confidence in the largest country in the EU.
Other top-ranking countries for stable and secure property investment are Canada, which rises from fourth to third position; Australia, up from fifth; and the UK, down to fifth position from third in 2016.
AFIRE attributes the fall in British placings to the uncertainly generated by Brexit. London fell to third in the top 5 global cities after five years in first or second place. Conversely, half the AFIRE members who took part in the survey stated that Brexit would have a positive effect on property investment in the US.
Best US cities for property investment
New York City continues to outrank all other cities in investment terms. For the seventh year in the row, the Big Apple sits in first place for property investment in the US. It has also held the position as the best global city for the last three years.
Next in preference for investment are Los Angeles, Boston, Seattle and San Francisco. All four cities featured last year and continue to offer the best investment opportunities in the country. AFIRE members also mentioned strong investment potential in smaller cities such as Charlotte, Nashville and Pittsburgh.
Property investment in US and Brazil best capital appreciation
Another category in the AFIRE annual survey is the best countries for capital appreciation. The US takes top position for yet another year – figures released by the National Association of Realtors for 2016 reveal the best sales in a decade and all-round price rises of 4 per cent.
Capital appreciation in Brazil also continues to appeal to AFIRE investors. The country retains its second place in the global ranking, ahead of both Germany and the UK. In addition, Brazil features in the top emerging countries along with China, Mexico, India and Chile.
“Property investment in the US certainly continues to offer excellent opportunities especially as market supply cannot keep up with demand,” says Dies Poppeliers, Managing Director of BRIC Group. “We too believe that the US and Brazil have great potential for capital appreciation, one of the reasons behind our presence in both these countries.”
BRIC Group, an investment company specialising in global real estate opportunities, offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group is also developing The Coral resort, in Northeast Brazil, a luxury beachfront resort with land and villa investment opportunities. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.