Industry News

Global investors covet U.S. real estate

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After a 7.3 percent shortfall in planned investment in the year 2002, foreign investment in U.S. real estate rose by 59 percent in 2003 and is expected to increase by another 11.9 percent in 2004 as foreign investors earmark 56 percent of their cross-border allocations for U.S. real estate, according to the results of a survey released Wednesday by the Association of Foreign Investors in Real Estate. The top five U.S. cities on foreign investors' shopping lists are Washington, D.C., New York, Los Angeles, San Francisco and Chicago, the survey found. Global real estate investing followed a similar trend, rising 21.3 percent over 2003 investment levels. The 12th annual survey was conducted by Kingsley Associates among AFIRE members who collectively have nearly $300 billion invested globally, with about half of that invested in the United States. "As an asset class producing very respectable returns in an extremely volatile equities market, real estate has become a serious competitor ...