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Foreign capital is pouring into U.S. Real Estate markets at record levels. According to AFIRE, the Association of Foreign Real Estate Investment, the most active foreign buyers of American real estate in 2006 were, in order; Australia, Germany, Netherlands, Middle East, Ireland, United Kingdom, Japan, and Singapore.
The weak dollar represents two opportunities for foreign capital. First, the weak dollar allows more property purchased per foreign currency unit. Second, when the dollar rebounds, the investment value increase again, making the real estate investment doubly attractive to foreigners. Current currency prices avail the foreign investor an eighteen to forty-six percent discount for U.S. assets compared to foreign markets including Europe and Asia. Currently, foreign investors own $70 billion worth of U.S. commercial real estate assets (approximately 3.1 percent of the total inventory by market value), according to AFIRE. (Association of Foreign Investors in Real Estate). According to industry insiders, in excess of U.S. $200 Billion foreign investments will be placed into American real estate over the next several years.
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