Wednesday, January 20, 2010
Wisconsin Real Estate Viewpoint Blog
Results of the 18th annual survey conducted among the members of the Association of Foreign Investors in Real Estate (AFIRE), show a dramatic increase in the number of respondents identifying the U.S. as the country providing the best opportunity for real estate capital appreciation. This is the third year the survey was conducted by the James A. Graaskamp Center for Real Estate at the Wisconsin School of Business. Professor François Ortalo-Magné will present the survey results at the group's winter conference in New York in February.
The survey was conducted in the fourth quarter of 2009 among the association’s nearly 200 members. Survey respondents own more than $842 billion of real estate globally, including $304 billion in the U.S.
In this year’s survey:
- 51 percent of respondents identify the U.S. as providing the best opportunity for capital appreciation.
- This compares to 37 percent in 2008, 26 percent in 2007, and 23 percent in 2006.
- The last time respondents’ perceptions for U.S. real estate were this strong was in 2003, when the percentage once again reached 51 percent;
- the U.K. emerges as the second-best country for capital appreciation, receiving 30 percent of respondents’ votes. In third place, China receives 10 percent of respondents’ votes.
- two thirds of respondents plan to increase their investment in the U.S. in 2010 compared to 2009.
Among U.S. cities representing the best investment opportunities, survey respondents firmly select Washington, D.C. and New York, receiving much stronger scores than third-place San Francisco. This year, Boston makes a significant climb into fourth place, and Los Angeles falls one spot into fifth place.
For more survey results, read here.