Foreign investment in US commercial real estate market has been going up and is going to remain strong even in 2017, reported by CBRE group.
Reportedly in 2016, more than $60 billion is invested in US commercial real estate which makes its foreign capital volume stronger. Comparatively a strong economy and high returns are the biggest reasons the foreign investors are more interested in US real estate market despite the government’s accommodating monetary policy has set bond yields at low relative to their historical levels.
Moreover, US government also has kept made effective plans for expansionary fiscal policy with the incoming presidential administration in order to support economic growth and control inflation. This encourages overseas institutional investors to put funds in US commercial market for gaining high returns.
According to the report, most of foreign investors look at the secondary markets such as Dallas and Atlanta as they are used to invest outside of premium core product.
“Acquisitions activity should remain high in 2017, if slightly lower than the previous year. Global capital flows into the U.S. are expected to remain very strong, with China again the leading source,” says Chris Ludeman, Global President, Capital Markets, CBRE.
Source: World Property Journal