NAR, the National Association of Realtors, has a new report out which shows the increasing interest in US real estate from european and foreign investors and such firms as Engel & Vöelkers Group, a german based real estate company. Here are some excerpts from the NAR report:
“Despite a growing interest in Asia, U.S. real estate is first in the global property market among foreign investors with New York City and Washington, D.C. topping the list of global cities vying for foreign investors’ real estate dollars, according to the results of the 16th annual survey by the Association of Foreign Investors in Real Estate (AFIRE). The survey was conducted among the association’s nearly 200 members. Collectively, AFIRE members hold $700 billion of cross-border real estate, including $230 billion in the U.S. For the first time since the ‘global city’ category was added to the survey, U.S. cities have taken first and second spots. London ranked third, down from the top spot in 2006. China continues to be market to watch, being voted as the country offering the second best chance for capital appreciation ( U.S. was first). The gap between the U.S. and China has narrowed from 27 percentage points in 2005 to fewer than five percentage points in 2007. Read more survey results. The strength of the U.S. real estate market is underscored by the timing of the survey, conducted during the 4Q of 2007 after the much-publicized credit crunch and sub-prime mortgage crisis. That said, the U.S. is facing increasing competition. On average, survey respondents say they plan to increase global real estate investments from $1.394 billion in 2007 to $1.692 billion in 2008, an increase of more than 20% (compared to a 16% increase in planned U.S. acquisitions).”
“German Franchise Brings European Culture to U.S. Industry
The Germany-based Engel & Vöelkers, well-known in Europe for upscale international real estate, is expanding in the U. S. with a strong focus on Florida. With 10 European-style property shops already open throughout the state and an anticipated 240 more debuting over the next 10 years, the company is rapidly exposing the Florida residential market to its international network of agents and buyers, offering premium property representation. While the strong euro exchange rate makes Florida property appealing to Europeans, other international buyers are attracted to drops in American housing prices while foreign home prices are increasing. Reports indicate that 20% of all second homes in Florida are being purchased by foreigners. Engel & Vöelkers offices, all independently owned by franchisees, are designed to appeal to upscale international and local buyers with luxurious, unique, and boutique style ambience. Office features include clean lines, no clutter and windows free of property ads. Coffee is served in china–not Styrofoam–per Engel & Vöelkers’ mandate. To avoid offending clients of all cultures, associates do not personalize their desks. Engel & Vöelkers Group has operations in 24 countries and four continents.”
