Foreigners Invest in NYC Real Estate

Came across this post in Curbed today. This is further proof of increased foreign real estate activity in the U.S. Due to the weak dollar, foreigners are now flocking to the U.S. real estate, which is now a bargain for them. I hear from realtors who sell to foreign investors, that lately upwards of 30% of Manhattan condos have been sold to foreign nationals.

Also, check out this Business Week post which states that, according to the 16th annual survey of AFIRE (Association of Foreign Investors in Real Estate), the U.S. considered the “most stable and secure” country for real estate investment, as well and the country with the best opportunity for appreciation. NYC and DC are top two cities within the U.S. for foreign real estate investment.

Can foreign investment help stimulate our recently dormant demand for real estate, when our own citizens are feeling rather anxious about the state of real estate? I think it’s still a drop in a bucket overall, although foreign presence is really felt in NYC. In places like NYC and DC it can do a bit to ensure that new construction stays afloat. But it won’t do a whole lot for middle America, the America that got hit the hardest by foreclosures and subprime meltdown.