Governments Ease Foreign Ownership Restrictions to Stimulate Investment
With global markets down, governments worldwide are looking at ways to attract investors resulting in changes in foreign and nonresident ownership laws designed to stimulate in-bound investment. Caribbean nations, China, and Australia have all recently loosened restrictions and the Philippines is discussing it. India and Turkey made significant changes in recent years with the same objective. Emerging markets are most likely to examine their laws as most western markets have had few, if any, restrictions on foreign ownership. Read more in a recent Wall Street Journal article. Information on foreign ownership is available for 30+ countries in the Business Practices section at WorldProperties.com.
New Investor Survey Projects U.S. Recovery by Mid-2010
Foreign real estate investors expect to see a U.S. market recovery by end of 2Q 2010, according to a new survey from the Association of Foreign Investors in Real Estate (AFIRE). Completed in May, this is the first mid-year survey conducted by AFIRE. Respondents projected their investments for the remainder of 2009 will substantially out-strip investments completed year-to-date (YTD). On the debt side, respondents expect to invest three times more than current investment levels YTD; equity investors expect they will place seven times more than current YTD investments. Overall, 75% of the survey respondents had not yet invested in 2009; however, more than two-thirds plan to invest some debt or equity in U.S. real estate before year-end. Survey respondents continue to be optimistic in their investment projections; 31% said they were more optimistic than at the beginning of the year; 16% were more pessimistic; and 53% felt about the same. AFIRE members projected the office sector will lead the recovery, followed by multi-family and industrial sectors. This represents a shift in investor perception from the January Annual Survey in which investors expressed an interest for multi-family over office buildings for their real estate investment dollars.
Shift in Global Investors in Florida
The Florida market, one of the hardest hit by the recession, is reporting an increase in sales for existing properties for the 8th consecutive month. The Florida Association of REALTORS® (FAR) reported that existing home sales increased by 18% compared to a year ago, and existing condo sales rose by 21%. While promising, the value of new properties has fallen as much as two-thirds from the 2007 price peak, making a quick recovery of the previously hot development market unlikely. Low prices and the large number of bank-owned distressed properties are attracting investors, including overseas buyers. While Florida has long attracted international buyers, FAR reports a shift of the source of those buyers with Canadians overtaking the British as the largest source of buyers. REALTORS® working with foreign buyers seeking retirement properties in Florida will be interested in an April '09 report from Florida Tax Watch. The report advocates for the introduction of a national retirement visa, but also outlines current visa options. Read a two-part article (Part I / Part II) article in FAR's magazine on increasing exposure to global buyers.
Thailand Move Up in Ranking for Global Business Attractiveness
Despite recent political turmoil, Thailand has made great strives in attracting global business investors. The country has a skilled workforce, strong supply chain, dependable infrastructure, and enjoys strong investment support. The Doing Business 2009 study by the World Bank and International Finance Corp. ranked Thailand 13th in "ease of doing business," up from 19th in 2008. (Singapore was ranked #1; the U.S., #3.) The study cites the ease of paying taxes in Thailand, starting a business, trading across borders, and registering property. Thailand also was credited with its efforts to protect investors, improve bankruptcy procedures, and strengthen the legal rights of creditors and borrowers. U.S. investors will benefit from English being the second language. NAR maintains three organizational alliances in Thailand for REALTORS® seeking cooperative business development.
Global Demographics are Shaping Real Estate’s Future
Population growth, urbanization, aging, and migration--all factors affecting land use---are examined in Global Demographics 2009: Shaping Real Estate’s Future, a new publication from the Urban Land Institute. Population and demographic shifts will continue to place enormous pressure on urban areas. Over the next 40 years, the greatest population increases will occur in China, India and the U.S.; conversely, Europe will experience population declines. Mature but still growing economies (U.S., Canada, U.K., Ireland, Australia, and New Zealand) will offer attractive real estate investment and development prospects once the recession subsides. Many developing nations are emerging consumer markets, with a growing number of middle-income households generating enthusiastic consumer demand--boding well for the real estate industry. A summary of the real estate implications of demographic changes is included with each chapter. Read more highlights.