We have heard the stories over the past few years about the trend of foreign buyers investing in property in the United States. Now, Boston has ranked among the top U.S. cities for foreign real estate investors according to the Association of Foreign Investors in Real Estate.
What other cities are foreigners buying properties in? Boston held fifth place with Seattle behind New York, Los Angeles, San Francisco and Washington D.C. The survey was pulled from AFIRE’s 200 member firms and was conducted in the fourth quarter to compile these findings.
Despite the significant draw of these buyers to Boston, it had not made the top 5 list until now. James Fetgatter, AFIRE’s CEO, said in an interview that while Boston missed the top-five mark in the past few years, the city is a perennial favorite for foreign investors.
“It’s got all the things that they like,” he said. “Its barrier to entry is very high. It has a vibrant urban core. It’s got the educational institutions. And for the Europeans, it looks like a European city. … That’s a subtle thing, but certainly for the Germans and the other European investors, it’s a city that they can feel comfortable in.”
Fetgatter also stated that AFIRE members from Germany, Stockholm and Sweden are all heavily invested in the Seaport District. Namely with projects including the renovation of the Innovation and Design Building as well as many Seaport Square office developments. In addition, a German member from Hamburg recently acquired the Godfrey Hotel in Downtown Crossing and is also soon to acquire the new Lovejoy Wharf headquarters for Converse. Both projects total over $300 million.
“It will mean that not only have they perhaps been looking there currently, but probably for 2016 you’ll have a lot of interest,”Fetgatter said.
For AFIRE Global top 5 cities for investors, see original post here
Beth Dickerson is Senior Global Real Estate Advisor for Gibson Sotheby’s International Realty, Boston, Mass.