In H1 2016, foreign investors spent a total of 5.1 billion USD on apartment properties in the US. Investment into US apartments by foreign buyers has averaged 5.4 billion USD over the past ten years, and so the activity seen in H1 could be considered very healthy.
However, it represents a dip in investment compared to 2015, when foreign investors bought 19.6 billion USD worth of apartment properties. And the dip is surprising in light of the fact that most international investors – 64 percent, specifically – predicted in a recent survey that they would increase their level of investment in US property over the course of 2016.
According to James A. Fetgatter, Chief Executive of the Association of Foreign Investors in Real Estate (AFIRE), the appeal of the US real estate market remains strong in the eyes of foreign investors for a number of clear reasons. “In an environment that is regarded both as the safest and most secure in the world, with a strong currency and the best opportunity for capital appreciation, the US is the safest harbour.”
It cannot be denied that investment level is lower than previously predicted due in large part to the recent drop in oil prices. Buyers from Canada and the Middle East have been heavily affected by the oil price crash, and are consequently being far more careful about where and when they choose to invest.
This does not mean that investors from the Middle East are disappearing completely from the US real estate market – they are simply being more cautious in sourcing opportunities within that market. Although activity is down, it is far from negligible, and US real estate owners and project holders are still accessing Middle Eastern capital with the help of well-established deal facilitators.
Naseba has spent over a decade building a network of contacts with investors based around the world – including the Middle East, and we are currently sourcing real estate and development projects in the US on behalf of these investors.
On October 17th, 2016, we will be organising a private investor meeting in Riyadh to introduce pre-screened Middle Eastern investors to pre-qualified US real estate investment opportunities.
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To learn more, contact:
Naseba investor introduction
+971 4 455 7954