In recent years foreign investors have centered on the United States, investing in real estate. Major American urban metropolises such as New York, Miami, San Francisco and Los Angeles have seen multitudes of Asian, Latin-American and European home buyers purchasing varied properties, from houses in the Hollywood Hills, to condominium apartments in Brooklyn and Manhattan or villas in the trendy Miami neighborhood of Coconut Grove. This investment trend is not over yet and is not even showing signs of a slowdown. Foreign investors are still heavily buying “American bricks” and analysts predict that there will be more investors coming to take a piece of the U.S real estate market.
According to a recent study by Pricewaterhouse Coopers, the top five cities in the world that are worth investing for commercial real estate are in order New York, London, Tokyo, Los Angeles and San Francisco. These are considered “gateways” of commercial trade and finance for the globalized world market. These urban megalopolises will see an even larger commercial development as a result of the Trans-Pacific and Trans-Atlantic trade agreements. It is of great significance that three out of those top five are American cities, New York on one coast and the two largest urban settings in California on the other coast.
However if warehouses and industrial sites are a good sector for real estate investments in the U.S. for foreign buyers, residential investing is still primary. Rent prices in America are soaring. In 2015 for instance, rent prices which are commonly high in major U.S. cities such as New York, Los Angeles and Chicago, have also climbed in small American communities such as Denver, 10.2%, Kansas City, 8.5%, Portland, 7.2% and Austin, 7%. The median rent in New York is $2,331 and $2,460 in Los Angeles. San Francisco however is still the first city in the U.S. where rent is rising faster than anywhere else in America: 14.9% compared to 2014.
Therefore with the unstable economic market in the European Union as a result of the financial crisis in Greece and with the extreme volatility shown by the recent crash of the stock market in China, foreign investors looking for diversification, should take into serious consideration the opportunity of the great combination of relatively modest risk, shortened cycles and high returns offered by the real estate market in the United States.