Why is the US a good place for Foreign Investment? | MIPIM-World Blog
MIPIM World Blog
»»Why is the US a good place for Foreign Investment?
Investment

Why is the US a good place for Foreign Investment?

At MIPIM 2013, an expert panel shared insight into opportunities in the US, and what cities and property types are attracting foreign capital and why.
By on 278 Comments

Speakers

Chris Ludeman – President, Capital Markets CBRE
James Fetgatter – Chief Executive AFIRE
Dr Will McIntosh – Global Head of Research USAA Real Estate Company
Bernard Haddigan – President Haddigan Capital

 

Foreign >>US Investment at a Glance

$25b in total (2012)

  • Canada $9.1b
  • Middle East / Europe $11.3b
  • Middle East dramatically increasing
  • Asia $4.4b
  • South America $.58b

According to James Fetgatter via a survey conducted by his company, 39% of those surveyed were more optimistic on the US economy than they were a year ago and 0% were more pessimistic.

 

Safe Haven

According to Chris Ludeman, the stability of the US political structure is a major factor in the reputation of the US as a safe haven for foreign investors. This reputation is one that is bolstered not only by improvements in the US political structures, generally speaking, but also by instability in other regions of the world creating a positive relativity effect for the US.

However, the reputation of the US political system as a pillar of stability may be at risk given current events. James Fetgatter suggests that there are two major contributions that harm the confidence foreigners have in the US system; the $14t in national debt and the current freeze up in Washington caused by severe bipartisanism between democrats and republicans.

 

Dynamic Environment

The US maintains a highly dynamic economic environment at several levels; social, legal, financial, to name a few. Because of the social principles of the nation, the demographics of the US are always in a steady state of flux. Immigration continues to be an important part of US culture and these immigrant populations create opportunities for developers and investors because of their variety of tastes and needs.

The large number of cities and their ability to have unique legal and political initiatives provides further wrinkles in the opportunity fabric. Because of the multitude of niches foreign investors have a large number of investment products to choose from based on their individual tastes; as Chris Ludeman put forth, this appeals to foreign investors who represent a vast array of demands and priorities.

 

Hunger for Capital

The current US real estate development market is hungry for capital. Banks are lending with far tighter standards than pre-crisis conditions. Because of the tightening in the debt market developers are forced to look to equity, exactly the resource foreign investors are able to provide.

 

In Conclusion

The US market remains a world leader in foreign investment. Despite current political lockups between self-interested political parties, the US political system remains stable. The diversity of US culture creates a breeding ground of opportunity and a wide range of offerings for foreign investors. Mature systems exist to facilitate foreign investment. Today, unique lending tightness provides further incentive for US developers to welcome foreign equity. The US is in strong position and poised for further improvement if political entities can clean up their act and display more effective leadership.

 

Tony Konstant is currently receiving his master of Science in Real Estate at University of San Diego. He is also a guest curator for the MIPIM sustainability and innovation category on behalf of the University of San Diego, Burnham-Moores Centre for Real Estate.

 

Image: V Desjardins / Images & Co

About Author

Avatar

Related Posts

278 Comments

  10. Avatar
    Singles clubs on

    757574 664109Aw, this became an extremely nice post. In thought I would like to devote writing such as this moreover – taking time and actual effort to make a really very good article but exactly what do I say I procrastinate alot and by no means locate a approach to get something completed. 114258

  16. Avatar
    검증놀이터 on

    126163 466058An intriguing discussion will probably be worth comment. Im confident which you require to write more about this topic, it might not be a taboo topic but usually consumers are too couple of to chat on such topics. To one more. Cheers 397092

  19. Avatar
    cdrqq on

    361968 871257This internet internet site is often a walk-through rather than the details you wanted about it and didnt know who ought to. Glimpse here, and youll surely discover it. 459657

  52. Avatar
    omo ganhar na lotofacil 100 garantido on

    como ganhar na lotofacil, acertar na lotofacil, ganhar na lotofacil, como ganhar na lotofacil de verdade, como ganhar na lotofacil sempre, como ganhar na lotofacil 2020, como ganhar na lotofacil 100 garantido, dicas lotofacil, como acertar na lotofacil, dicas para ganhar na lotofacil

  194. Avatar
    lagu on

    I needed to thank you for this wonderful read!! I absolutely loved every little bit of it.

    I’ve got you book marked to look at new stuff you post…

  278. Avatar
    Jettie Rooney on

    Heya! I’m at work surfing around your blog from my new iphone 3gs! Just wanted to say I love reading your blog and look forward to all your posts! Carry on the fantastic work!