It’s been a long time since the world watched in a state of shock as the US real estate crisis unfolded. Globally the knock-on effects were profound, and at first, it seemed, insurmountable. This makes it even more remarkable that MIPIM this year has revealed so much positive news from the US.
Investment is pouring in and out of the world’s largest economy once again. The US National Association Of Realtors (NAR) revealed this week that some $92bn (€87bn) of investment made its way into the domestic residential real estate market from overseas, with $35bn being invested in the commercial sector.
Speaking to MIPIM News, NAR first vice-president William Brown said that there were a host of opportunities in the huge real estate industry, and that MIPIM was a crucial place for Europe to make contacts across the board.
Also at the conference was the Association Of Foreign Investors In Europe (AFIRE), which brings together over 200 member organisations from 21 countries, all with a goal of investing in the market.
Equally welcome was the news this week that investment flows from the US into Europe is also flowing. Among the companies looking to the region for opportunities is Thor Equities, which said on Thursday it was about to invest in the Scandinavian markets, with other deals imminent in the continent.
Thor is in good company. Austin-based pension investor Employees Retirement System (ERS) is looking even further afield, with a wish list of commercial and industrial-focussed real estate funds in emerging markets such as India, South America and Turkey.
“We are looking to invest perhaps a little against the flow, in countries where we feel that the growth potential is just beginning,” ERS real estate portfolio manager Adam Cibik said. “This is our second year at MIPIM and we see an increasing amount of capital flowing across borders. The industrial sector in particular is tied to the global economy.”
And there was good news for occupants of office space too. According to Noah Shlaes, chair of the US Counselors Of Real Estate (CRE), speaking to MIPIM News, office developers are catching up with Europe in meeting demands for the type of dynamic space modern innovative companies are looking for.
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