LOS ANGELES, CA / ACCESSWIRE / February 10, 2018 / According to a reliable report, foreign investments into the US luxury real estate market have exploded. In its analysis, the report specifically focused on foreign investments for United States properties whose cost is higher than $1 million.
Foreign Investment In The U.S. Luxury Real Estate Market Explodes
From April 2016 to March 2017, the amount of foreign sales hit almost $7.5 billion and this figure is about 72 percent increase from the previous year. What is even more shocking is the fact that 44 percent of these sales were cash purchases. This was reported by the National Association of Realtors.
Report from this organization also revealed that 5 foreign countries contributed most to investment into the residential arm of United States real estate. To put it in figures, it accounts for half or 50 percent of all the purchases. These five countries are no other than India, Mexico, China, the United Kingdom, and Canada.
On studying the report further, it was found out that about forty percent of the purchases of properties that cost more than $2,700 per square foot came from three major cities that are Los Angeles, Manhattan, and Miami. In addition, the report also revealed that Palm Beach, North Bay Road, and Miami Beach sold most houses.
Other areas where a lot of houses were purchased are Bay Point and Fisher Island. This is probably because of the high level of security and privacy that the areas offer.
The main target seems to be secure waterfront homes as many of them were purchased. In addition, houses that span more than 13000 square feet were also in high demand. Miami attracted more of high-net-worth buyers from South American countries like Argentina, Brazil, and Colombia. It also attracted some buyers from Philippines and the United Kingdom.
Los Angeles also sold a large number of properties especially the ones in coastal areas like Hollywood Hills West, Beverly Hills, and Malibu. In these areas, the average size of homes sold is 11,211 square feet. Buyers that dominated this region came from Italy, France, the UK, China, Israel, Qatar, and Saudi Arabia.
These buyers were more interested in purchasing properties in gated communities probably for security reasons. They also seem to prefer big mansions and houses built on large plots of land like an estate. Prospective buyers who make enquiries about Los Angeles homes are usually big players in tech, finance, media, and film industries. And when they buy these properties, they usually use them as business base and holiday home. In some cases, they buy it as an investment.
The story is slightly different in Manhattan. About 9,500 square foot properties were in most demand in Greenwich Village, Tribeca, and Upper East Side. House hunters looked for townhouses, penthouses, duplexes, and properties that were proximal to Central Park. By virtue of being a premier world-city, Manhattan attracts home buyers from all over the world. However, investors from Asia, Canada, and Europe dominated Manhattan luxury real estate market.
Finally, it is also worthy of mention that there is a forecast in the report that by 2026, the United States would have sold additional 22,000 properties to ultra-high net worth buyers from all over the world. There is no sign that the upward trend of luxury real estate boom in the United States will change anytime soon.
Neil Shekhter is the CEO of NMS Properties, a privately owned real estate management firm that specializes in multi-family and mixed-use properties in the Greater Los Angeles Area and in Santa Monica. Founded by Neil Shekhter in 1988, NMS currently manages more than 70 properties.
Los Angeles Apartments For Rent - NMS residential: http://www.nmsresidential.com/
Santa Monica Apartments For Rent - NMS residential: http://www.nmsresidential.com/
Neil Shekhter - Founder and CEO of NMS Properties: http://www.nmsproperties.com/neil-shekhter
Contact Information:
news@nmsproperties.com
neilshekhter@nmsproperties.com
SOURCE: NMS Properties
