Industry News

Foreign investors increase real estate spend in 2005

Many plan to expand portfolios outside U.S.

As the "degree of difficulty" in finding attractive real estate investment opportunities increases, foreign investors are losing their appetite for U.S. real estate. According to the results of a survey released today, members of the Association of Foreign Investors in Real Estate said that while overall spending will increase both globally and in the U.S., they will reduce the U.S. percentage of their total global real estate acquisitions from 71 percent in 2004, to 55 percent in 2005, and invest a greater percentage of their portfolios in an ever-widening global arena that includes Japan, Eastern Europe and Australia. The 13th annual survey was conducted by Kingsley Associates among AFIRE members who collectively have nearly $300 billion invested globally. Nearly 60 percent of survey respondents this year said that it has become "very difficult" to find attractive real estate opportunities in the U.S. In 2003, only 38 percent of respondents said it was very difficult, and in 2002...