Where should you be marketing US property overseas?

Manhattan-stock

Foreign interest in US real estate has grown significantly over the last decade. With an increasingly diverse range of investors attracted to the USA, where should you be marketing your property? New research from Lead Galaxy analyses data from TheMoveChannel.com and the National Association of Realtors to determine where international demand comes from.

The rise of Chinese capital

 
In the year to March 2011, Chinese buyers bought a total of $11.2 billion worth of US property, according to the NAR. In March 2016, that surged to $27.3 billion, over triple the total dollar volume of sales from Canadian buyers (ranked second at $8.9 billion) and more than the four next biggest nation groups combined. Buyers from India were in third place ($6.1bn), followed by Mexico ($5.5bn) and the UK ($4.8bn).

In 2016, Chinese buyers purchased the most housing units for the second consecutive year (29,195 – down slightly from 34,327 in 2015).

What buyers are looking for

 
New York and Florida remain highly appealing to foreign buyers, as the USA continues to be a strong investment opportunity with lifestyle appeal. Latin Americans, Europeans and Canadians, who tend to buy in warm climates for vacation purposes, are significant drivers of interest in Florida and Arizona, according to the NAR. California and New York, on the other hand, tend to draw Asian buyers.

Texas is also an increasingly popular hotspot among international property investors. TheMoveChannel.com’s figures show that enquiries for Texan real estate rose 14 per cent at the end of 2016. The state accounted for 1 in every 12 enquiries for US property in 2016, making it the fifth most popular destination.

Florida was the number one state for foreign investors, accounting for a quarter (24.8 per cent) of all enquiries, narrowly ahead of New York (24.6 per cent). Michigan was the third most sought-after destination (11.6 per cent), followed by South Carolina (9 per cent).

Overseas demand set to continue

 
Overseas demand remains strong in the new year, reveals data from TheMoveChannel.com. US property has accounted for 12 per cent all enquiries on the portal in the first three months of 2017, up from 10 per cent in Q4 2016, and 9 per cent in Q3 2016. As of March 2017, the USA has been the most popular destination on TheMoveChannel.com for eight months in a row.

Property prices are forecast to grow by a more moderate 3.9 per cent in 2017, but with capital growth potential and potential rental yield still strong in certain markets, interest in Detroit and Texas looks set to continue growing.

Reach highly targeted audiences around the world with Lead Galaxy. For more information, click here, or call Lead Galaxy on 0044 207 952 7653.

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Reach highly targeted audiences around the world with Lead Galaxy. For more information, click here, or call Lead Galaxy on 0044 207 952 7653.