Yoram Eliyahu: More American Investors Turning to European Properties

NEW YORK, NY, August 21, 2012

Reuters reports that United States investors have acted as a "major source" of foreign money coming into the United Kingdom, Germany, and France during the first half of 2012. Real Capital Analytics, a research firm, has compiled a mid-year review that reveals that local investors are less prone to invest, clearing the way for Americans to purchase commercial real estate. Yoram Eliyahu, a real estate professional, explains that this is a perfect example of how global financial events can impact domestic investment activities.

Dan Fasulo, who is the Managing Director of Real Capital Analytics, asserts that "The local players are struggling or are scared." The financial turbulence in Europe has, presumably, created unstable conditions that are discouraging local investors from making large purchases, such as commercial real estate. This opens up the market for foreign investments, many of which, the report indicates, have come from the United States.

"With so much going on, financially, in Europe, it is no wonder that European investors are taking a step back," asserts Yoram Eliyahu. "In so doing, they have created space in the market for American investors, who are looking for new ways to build their financial wellbeing. While the United States economy is certainly improving, local investors may be a bit skittish of domestic properties. Instead, they turn to international investment opportunities that may, in some cases, present stronger returns."

The article reports that global investments in commercial real estate improved between the first and second quarters of 2012, hitting $157 billion. Much of this capital exchanged hands due to apartment building sales, notes the report. Despite this increase, investments have actually slowed over the last year. The article asserts that "first-half investment was 23 percent lower than a year ago, reflecting a global slowdown in commercial real estate investment, the report said."

While foreign investments made by Americans have increased in Europe, investments in commercial real estate in the United States by non-European countries are favorable. In fact, the article states that investors from the Mideast Gulf nations, Korea, China, Israel, Japan, and The Netherlands have all invested in the U.S. market.

Yoram Eliyahu is encouraged by these developments. "Globalization has made it important to have a healthy economy as a whole, not just from one country to the next," asserts Yoram Eliyahu. "Yes, the European countries are facing financial uncertainty and the United States economy is still on the mend; however, the fact that investors are still purchasing commercial real estate is important. It shows that the economy is continuing to move forward even in the face of financial troubles."

ABOUT:

Yoram Eliyahu is a real estate professional who provides high quality customer service and industry insight to his clients. Dedicated to helping others succeed, Yoram Eliyahu shares his expertise through information sessions. With an understanding of commercial real estate, Yoram Eliyahu provides invaluable guidance to his community.

Website: http://yorameliyahu.org/