espite a recent slowdown, According to the U.S. Department
the U.S. real estate market of Commerce, the top seven
continues to be a popular countries that had significant
investment destination for holdings in U.S. real estate as
foreign investors. Attracted by a of 2005 were:
desirable return on investment,
many foreign nations continue to Germany – 13 %
invest heavily in the U.S. Latin America – 13 %
residential and commercial real Australia – 11 %
estate markets. In fact, in 2005, Japan –10 %
foreign investment in U.S. real United Kingdom – 10 %
estate reached 1.83 trillion. Canada – 6 %
Netherlands – 6 %
To evaluate the impact of foreign
investment on the U.S. real The U.S. economy is wide open to
estate market, the National foreign investors. Both investors
Association of Realtors (NAR) and Americans significantly
produced a 2006 report entitled benefit from all this foreign
'Foreign Investment in U.S. Real investment. The NAR study
Estate: Current Trends and estimates that without foreign
Historical Perspective.' The investments in the securities
report provides insights into the market, the long-term lending
trends in foreign real estate rates would be four percentage
investment, its impact on the points higher than the current
U.S. economy, and the major rate, which would adversely
countries that participate in impact the U.S. real estate
U.S. real estate investment. market.
Below are some highlights from
the NAR report. Foreign direct investment into
the U.S. not only creates more
jobs but also contributes to the Harvard University, 1.2 million
demand for U.S. real estate. In net immigrants are expected to
fact, foreign investment may be arrive in the United States
responsible for creating two annually. This immigration
million U.S. jobs by the end of pattern is expected to offset the
2006, which further bolsters the decrease in housing demand by
demand for U.S. real estate. post baby-boomer generations.
Permanent and temporary In summary, the impact of foreign
immigration of foreign-born investment and immigration into
workers into the U.S. further the U.S. will continue to play a
bolsters the demand for real major role in the U.S. real
estate. According to the Joint estate market.
Center for Housing Studies at
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