The majority of respondents to a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE) have indicated they would prefer to buy property in the United States this year. Turkey is expected to be another hot spot in 2013, while China’s popularity is waning among international investors.
London is the second most popular destination for international investors
Four of the top five cities favored by investors are located in the United States. The survey results suggest investors are becoming increasingly optimistic about the economy and the prospects for the property market. Eighty-one per cent of respondents said they intended to increase their holdings in the U.S during in 2013.
New York City was the most popular city among investors. London held the second place and San Francisco was third on the list. Houston which had not ranked at all last year, came in fifth. Washington, D.C. held the fourth spot.
Nearly 200 AFIRE members responded to the survey, which was conducted in the fourth quarter of 2012 by the James A Graaskamp Center for Real Estate at Wisconsin School of Business. The Association’s members have an estimated $2 trillion in real estate assets under management. Forty-two per cent of the investors and 26 per cent of the advisers are based in the U.S.
The survey results also revealed that the U.S was the country investors saw as being the most stable and secure for real estate investment purposes. Canada held the second spot, followed by Germany, Austria. Sweden and the UK shared fifth position.
The United States ranked first in the category as best country for real estate price appreciation with 55 per cent of the vote. Brazil came in second at 17 per cent. The UK was third and Turkey moved up from its No. 9 ranking for 2012 to fourth place.
China, which had held the No. 3 ranking last year, failed to make the 2013 for price appreciation at all. Shanghai fell from No. 5 to No. 12 this year and Hong Kong fell from eighth to nineteenth place.
Europe did not do well on the survey, either. Approximately 80 per cent of respondents stated that they believed Europe would remain in recession throughout the year.
