The state of real estate markets all over the world is inhomogeneous this year, from the level of activity at the markets, to the number of investors and the availability of capital.
Investors from Asia, the Middle East and other countries, such as Canada, Germany and some Latin American countries, prefer to invest in real estate in the U.S.A., especially in the cities that are considered to be safe for investment markets. New York, California, Texas, District of Columbia, Pennsylvania and Massachusetts are popular.
The total investment in the United States in 2012 amounted to $ 27 billion. Two-thirds of this sum were invested in nine major markets, including Chicago, Los Angeles, San Francisco and Manhattan. As a result of this total investment value of land and real estate in these cities has increased very much. Moreover, popular investor demand is also a reason of growth of prices for real estate.
In some cities, including Houston and Dallas the energy sector is developing headlong. It attracts foreign investors to real estate. Development of the oil and gas industry in Texas and Louisiana also caused an increase of activity at these real estate markets. Investors are attracted by increase of the number of vacancies in these cities owing to the development of the energy sectors.
High prices for the real estate in big cities encourage large investors, for example from Canada and Israel, look for variants in other promising cities. Investors direct their attention mainly to industrial and office spaces. Financial system in Texas is expected to grow over the next 20 years to 14 million. This growth will also cause the demand for real estate.
Low-cost financing and low interest rates in the U.S.A. are also driving factors of high level and rising of prices at major real estate markets. Although interest rates can not stay low for a long time due to the increasing rate of price growth, high growth in prices is not expected within the next two years.