A growing number of overseas property investors are looking into safe investments, like the U.S. property market, with New York in particular now a favourite place for international investors to stash their cash.
A new survey shows that the Big Apple remained the number one choice as a global destination this year among foreign investors in commercial property.
New York is in its seventh year as the prime U.S. city for foreign investors, and its third year as the top global city, members of the Association of Foreign Investors in Real Estate (AFIRE) indicated in the poll.
The election of Donald Trump as president of the U.S. should have a positive impact on New York’s property market, as well as its wider economy, according to Kenneth McCarthy, principal economist at Cushman & Wakefield.
McCarthy believes that Trump’s promise to lower taxes, improve the infrastructure, and deregulate financial services all bode well for New York City.
“It’s all about the economy,” said McCarthy. “With uncertainty facing the world and elections coming up in France, Germany and Italy in 2017, New York will benefit as a safe haven for real estate.”
Germany was second behind the United States among countries that provide the most stable and secure real estate investments, according to the survey.
Among developing countries considered for property acquisitions, China was first, followed by Mexico and Brazil.
Some 95% of respondents to the survey conducted in Q4 2016 by the James A. Graaskamp Center for Real Estate at the Wisconsin School of Business said they would increase or maintain their level of U.S. investment.
Industrial real estate, sparked by the demand for warehouses as online shopping booms, was the top choice of property types, followed by multifamily apartments, AFIRE said.