The United States was chosen the top destination for foreign direct property investment for the 12th consecutive year, according to global consulting firm Kearney
USA was ranked as the top foreign direct investment destination for the twelfth consecutive year, according to global consulting firm Kearney’s Foreign Direct Investment (FDI) Confidence Index. Dividenz, the Real Estate investment platform in USAexamined the reasons behind this preference.
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This ranking is based on the responses of more than 300 executives from 28 countries, who consider the political, economic and regulatory changes that influence FDI. According to Kearney, the sustained leadership of USA is attributed to several key factors, including an impressive economic rebound in the fourth quarter of 2023 and a domestic GDP that grew by 1.3% in the first quarter of 2024. This dynamism was driven by strong domestic consumption along with an increase in exports and an improvement in real estate market conditions.
The real estate sector, especially prominent among foreign investors in USAis positioned as the most robust globally, attracting investments for a total of approximately US$53.3 billion in the last year.
The main countries that invest in the real estate market are:
- China: It leads foreign investment in Real Estate in the United States with more than US$13.6 billion, representing 25% of the total. Investors from this country mainly focus on the markets of California (33%), Florida (16%) and Texas (8%).
- Mexico: Mexican investors allocated US$4.2 billion (11%) to US Real Estate, mainly in Texas (48%), California (18%) and Ohio (6%).
- Canada: It occupies third place in total investment with US$6.6 billion (10%). Their favorite destinations are Florida (55%), Arizona (14%) and California (4%).
- India: With an investment of US$3.4 billion (6%), India is positioned as the fourth largest foreign investor. They are concentrated in California (20%), Pennsylvania (14%) and Texas (11%).
- Colombia: Completing the top 5, Colombia invested US$900 million (2%) in real estate in the United States, with Florida as the main destination (80%), followed by California (13%) and Illinois (7%).
Within this market, Florida attracts most of the foreign investment in Real Estate, being the preferred destination for many countries. Colombian and Argentine businessmen and investors are the main home buyers in the city of Miami, representing 15% and 14% of total purchases, respectively. Others that stand out are Brazilians (7%), Venezuelans (6%), Canadians (6%), Mexicans (5%), Peruvians (5%), Ecuadorians (5%), Chileans (4%) and French (3 %).
California and Texas also stand out as popular destinations, attracting a considerable proportion of foreign investment, especially from China and Canada in the case of California, and from Mexico and India in the case of Texas.
Within North American Real Estate, multifamily is the most important segment. With a concentration of US$278.8 billion, it annually leads the list of the real estate sectors with the highest investment, and has come to represent 35.2% of the market share in 2023. This sector consists of large complexes or residential buildings of a single owner, who own multiple apartments. These attract a high demand due to the constant need for housing and due to the large population growth of most states in the United States. The investment model in Multifamily Real Estate offers investors a combination of stable income through the rental of units and the possibility of long-term property appreciation.
Foreign investment in the multifamily sector has been significant, with China, Canada, India, Mexico and Colombia standing out as the main investors. For example, Chinese buyers represent 30% of investments in multifamily properties in the US.
“The diversity of opportunities, from residential to industrial properties, the constant growth of the market and attractive returns make United States Real Estate one of the most attractive for foreign investors,” said Julieta Monge Molina, commercial director of Southern Cone. Dividenz.
