adminLONDON. — New York City took a double hit in an annual survey of real estate investors, which saw London overtake it in first place globally and Los Angeles tie it for top US city.
The annual survey of the Association of Foreign Investors in Real Estate asks its members, who are estimated to have more than $2 trillion in real estate assets under management, to rank markets by various measures, such as stability and opportunity for capital appreciation. This year’s poll, the 26th, also saw pricey San Francisco, which had been one of the top five global cities since 2011, fall to 11th place, and Washington, DC, skid to 25th from 15th place last year, part of a long slide.
Foreign investors are less worried about the impact of Britain’s exit from the European Union than they were a year ago, association Chairman Edward M Casal said in a statement, referring to London’s jump from third to first place – although Britain did fall from third to fifth among countries offering the best opportunity for appreciation.
The US was first for planned real estate investment in 2018, followed by the UK, Germany, Canada and France.
And New York is no slouch.
New York’s tie with Los Angeles was a surprise, association Chief Executive Officer Jim Fetgatter said. It was LA’s first time in the top spot for US cities, while New York had been named the top US city for the last seven years. Los Angeles can thank its mighty port for the honour.
“With the growth of online shopping, foreign investors continue to rank industrial/logistics properties as their No. 1 investment opportunity,” Fetgatter said in the statement.
In an interview, he said that the recent US tax overhaul is “not necessarily a boon” to real estate, preserving much of the status quo for the industry, but is generally a positive development. Investors will benefit from the far lower corporate tax rate, which will create jobs and increase income, he predicted.
The survey was conducted in the fourth quarter of last year by the James A Graaskamp Centre for Real Estate, at the Wisconsin School of Business. — Bloomberg.
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