According to CBRE, Canada is the most active global investor in U.S. real estate, with approximately $10 billion in direct investments in 2014, far outpacing Norway, China, Japan, and Germany. In 2014, global direct investment in US real estate totaled $41 billion, accounting for roughly 11% of overall investment in US property assets. When compared to 2013, this indicates a 6% rise in worldwide investment. udc qatar
Last year, Canada was the leading global buyer of U.S. real estate, accounting for 26% of all direct foreign investment, or $9.7 billion. As of mid-January 2015, Canadian investors have already transacted $2.75 billion in US real estate. After U.S.-to-U.K. and Hong Kong-to-China capital flows, Canadian real estate investment in the United States was one of the world's greatest cross-border capital flows in 2014.
Norway was the second-largest foreign investor in U.S. real estate in 2014, with $14.4 billion in direct foreign investment, a 120 percent increase year over year. China and Japan invested a total of $3.8 billion (+6%) and $3.5 billion (+397%) in the United States, respectively, accounting for 9% of the total worldwide investment. German purchasers spent $2.9 billion (+5%) on real estate in the United States, accounting for 7% of the total.
"While we've seen rapidly rising Chinese global investment and oil-rich countries in the Middle East and Norway increasing their allocations to global real estate," said Chris Ludeman, Global President, CBRE Capital Markets. "Canadian buyers continue to dominate foreign investment in the United States and should remain on the radar screens of American investors and owners of U.S. real estate."
"Finding excellent opportunities with affordable price that can provide a favorable risk-adjusted return is a difficulty that Canadians, other global investors, and Americans all face. Nonetheless, we anticipate a brisk investment climate in 2015, with U.S. volumes continuing to rise."
By far the most popular destination for Canadian global wealth is the United States. In 2014, Canada invested $22 billion outside of its borders, with 44 percent going to the United States. Australia and the United Kingdom received the next highest percentages of 17 percent and 14 percent, respectively. It's worth noting that in 2014, the United States' market share of Canadian global investment fell below its 2007-14 average of 48 percent.
"For many of the same reasons that other countries do, Canadian investors find U.S. real estate appealing. The United States provides chances for wealth development, solid cash flows, and favorable risk-adjusted returns, among other things "CBRE's Director of Research for Canada, Ross Moore, stated. "Canadian investment is closely associated with the strength of the American economy and exchange rates, but the overarching rationale is that Canadian institutional investors need to look beyond their borders to discover product and diversify their portfolios."
Canadian money is more widely distributed across the United States than other global capital. Given the size of Canadian investment, its high level of knowledge with U.S. markets beyond the gateway cities, and the comparatively low cost and time commitment required for Canadian investment professionals to go to U.S. markets, this should come as no surprise.
New York is the largest destination for Canadian real estate capital across all property categories, as well as total global capital flows into the United States, followed by Boston and Broward County, Florida, which made the list due to a significant hotel acquisition. Seattle is out of the ordinary for a global capital, but it isn't out of the ordinary for a Canadian capital, considering its proximity to the country and, in particular, Vancouver.