Apartment sales worth $150 billion last year

by MPA04 Feb 2016
With sales volume amounting to $150 billion, 2015 proved to be a landmark year for foreign investments in apartment buildings scattered across major U.S. cities, according to the Association of Foreign Investors in Real Estate (AFIRE).
Supporting AFIRE’s observations were figures from leading research firm Real Capital Analytics (RCA), which showed that the amount of international capital moving through U.S. markets last year rose by around 180 percent compared to 2014.
The development came on the heels of AFIRE’s recent annual survey on its members, which uncovered that New York City has become the leading choice for foreign investors worldwide because of the reliability and stability offered by the U.S. economy.
“The investment opportunity is the United States, itself,” AFIRE chief executive James A. Fetgatter told National Real Estate Investor.
“The real estate fundamentals are sound; the economy continues to remain strong; there are opportunities across all sectors of the real estate spectrum and in both gateway and secondary cities,” Fetgatter added.
Among the foreign investors participating in the U.S. property market, Canadians were the most active with over $10 billion spent on apartments last year. In addition, Canadians not only transacted in large sums; they also purchased more frequently compared to their peers.
“It takes more than one big deal. It is a lot of small transactions,” RCA senior vice president Jim Costello said.
U.K. and Middle Eastern investors also had strong showings last year, with (respectively) around $2 billion and $1.6 billion in U.S. apartment outlays.


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