Insight reveals the US focus of global institutional investors
The world’s largest investors in real estate have provided some insights into what’s currently hot in the US real estate from their perspective.
A survey by AFIRE, an association for global investors focused on institutional real estate in the United States, has found that the US economy and real estate market is considered favorable with strong fundamentals.
14% of respondents expect 2019 to present more attractive investing opportunities in US real estate than in 2018, including among emerging niche markets and property types.
However, interest rates, political concerns, and climate change impacts are among the global concerns of institutional investors and this applies to their view of risk in the US market too.
Industrial and multifamily property sectors continue to be seen positively and were categories where respondents would most like to increase their exposure, with nearly 80% wanting to increase industrial exposure and 71% wanting to increase multifamily exposure.
Cities that are considered most stable
New York is ranked as the most stable and secure real estate opportunity by 30% of investors, its second consecutive year at the top, while London takes first place as the leading global city offering the best opportunity for capital appreciation from real estate investments.
When asked where investors would like to increase their real estate exposure, the US proved yet again to be a strong country for investment opportunities with New York, Boston and Seattle taking the top 3 spots. San Francisco makes the top 5 along with 4th placed Berlin.
However, New York, San Francisco, Chicago, and Washington DC are among the top 5 cities where investors want to reduce their exposure; this list is topped by London by a considerable margin.
Brexit uncertainties, the divide and dysfunctions seen in US domestic politics, currency and interest rate fluctuations, as well as ongoing tension between the US and China, are significant widespread events that may influence the decision-making process for real estate investors.
