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Canada tops list of US real estate investors

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A substantial number of overseas buyers currently invest in US real estate, but Canada is leading the charge according to a new report from CBRE.

Canadian purchasers made almost US$10 billion worth of direct investments in US property last year, ahead of countries including Norway, China and Japan. The figure is certainly startling when compared to global direct investment in American real estate, which reached $41 billion total during the year.

CBRE explained that this Canadian real estate investment was actually one of the largest cross-border capital flows in the world. Hong Kong to China and the US to the UK were other notable flows of property investment.

"While we have seen rapidly rising Chinese global investment and oil-rich countries in the Middle East or Norway increasing their allocations to global real estate, Canadian buyers continue to dominate foreign investment in the US and should remain on the radar screens of American investors and owners of US real estate," said Chris Ludeman, the global president of CBRE Capital Markets.

"Canadians, other global investors and Americans share the same challenge - finding attractive opportunities with reasonable pricing that can produce a favourable risk-adjusted return."

He went on to explain that CBRE expects the investment circle to stay brisk throughout this year, with US volumes continuing to rise.

Of note is that New York is currently the prime destination for Canadian real estate capital, followed by other east coast locations including Boston and Broward County in Florida. This southern county managed to rank highly thanks to a major hotel acquisition.

West coast city Seattle also managed to reach a high placing, which CBRE attributes to the geographical proximity to Vancouver.

Canadian property investments in the US are certain to continue throughout 2015, with capital expected to continue flowing into New York and the other aforementioned locations.

Date Published: 10 Feb 2015
Category: General News

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