In the face of the euro zone crisis, investors from across the world, from Asia, to the Middle East and North America have been increasingly active in Europe’s core markets, as cross-border investment rose by 19% last year.
The forecast is that levels could rise by 5 to 6 percent to 141 billion euros in 2013, despite the fragile European economy.
Core markets still offered the security of quality assets and solid returns.
According to the data, investors are focusing on the larger core markets alongside Nordic countries. While France, the U.K. and Germany saw their market share fall slightly from 62% in 2011 to to 61% this year, Nordic countries have seen their market share has rise from 15.3% in 2011 to 17.9% in 2012.
U.S. tops industry poll
Meanwhile, for the first time in the 21-year history of the Association of Foreign Investors in Real Estate (AFIRE), four of the five cities selected by the members as the top global cities for their investment dollars are in the U.S. The top five global cities are: New York, London, San Francisco, Washington, D.C., and Houston.
AFIRE member firms have an estimated $2 trillion or more in real estate assets under management globally.
The survey, completed during Q4 by the association’s near 200 members, reveals overwhelming confidence in US real estate.
With 55% of the vote, the U.S. is ranked first for providing opportunities for capital appreciation. Brazil, ranked second, received only 17% of the vote.
Countries Providing the Most Stable and Secure Real Estate Investments
- U.S.A. (#1 last year)
- Canada (#2 last year)
- Germany (#3 last year)
- Australia (#4 last year)
- United Kingdom (#5 last year) tied with Sweden (unranked last year)
Top Global Cities
- New York (#1 last year)
- London (#2 last year)
- San Francisco (#5 last year)
- Washington, D.C. (#3 last year)
- Houston (unranked last year)