As a politically stable country and the largest in economy in the world, US is a safe country to consider investing in. The US market welcomes foreign investors.
According to LaSalle research & Strategy, the US is the world’s largest institutional real estate market, home to an estimated one quarter of all institutional property.
The housing prices have begun their recovery phase from the ‘global financial crisis’ in 2008 and now in the early stages of a new growth cycle, with excellent prospects for future capital growth. Since 2008, the property market has since been characterised by a significant improvement in prices, number of transactions and mortgage originations.
Not all markets are moving together in US, there is a big diversification of property markets across all cities and states. In housing, whilst rapidly rising housing prices in San Francisco and New York have been pushing rents and mortgages to very high levels, other markets are still in the very early stages of recovery.
Most commercial real estate sectors are performing quite well, but transaction have ben falling. Despite the slowdown in sales activity this year, pricing remains strong and most sectors saw increased values per square foot.
According to Colliers, investment momentum continues to shift from primary into secondary markets, and from CBDs into inner suburban submarkets, particularly for offices and apartments, as both foreign and domestic investors eschew premium pricing in the top markets.
Finally, the US is experiencing strong economic growth, with wages increasing rapidly and at the same time unemployment rate continues to improve. In addition, there has generally been an expansionary monetary policy of the Federal Reserve and thereby giving confidence to the economy.