The U.S. is still the best place for commercial property investment, with Brazil close behind, according to a report from the Association of Foreign Investors in Real Estate, Reuters reported.
Investors have flocked to American gateway cities such as New York City, San Francisco, Boston and Los Angeles, to invest in commercial real estate in the last year, amid uncertainty in Europe. But Sao Paulo has skyrocketed to the fourth-best city in the world for real estate investment dollars, Reuters said.
The 20th annual survey, whose respondents own more than $874 billion of real estate globally, found that 60 percent of real estate investors plan to purchase holdings in the U.S. or increase U.S. holdings in the next year.
The U.S. was also second only to the U.K. in attracting foreign investment generally last year.
“The negative is it doesn’t promise a whole lot of capital appreciation because the prime markets are already fully priced,” the foreign investors’ association’s CEO, James Fetgatter, said of American commercial real estate. “By no means will Brazil replace the U.S., at least not in the forseeable future. Brazil is considered now a much safer place to Invest And A Place where you can get capital appreciation and good yield.” [Reuters]