《《foreign-investment-in-US-real-estate-2016-06》.pdfVIP

FOREIGN INVESTMENT IN U.S. REAL ESTATE Current Trends and Historical Perspective Prepared by the Research Division of THE NATIONAL ASSOCIATION OF REALTORS® June 2010 Table of Contents Introduction 3 Recent Trends in International Investment 4 Foreign Investment in U.S. Commercial Real Estate 9 Foreign Investment in U.S. Residential Real Estate 12 Concluding Remarks 15 2 I. Introduction The expanding globalization of the world economy has spurred increased investment and trade across international borders over the last several decades. The trend towards more international investment and trade was accelerated in the 1990’s by several economic phenomena. The demise of the Soviet Union opened a vast area to the global economy that had previously been isolated from the free world and its markets. Furthermore, the emergence of fast growing, highly populous, developing countries -- such as India, China, and Brazil -- accelerated investment and trade even further. The United States has historically been an attractive place for international investors. International investors are drawn to the U.S. because of its strong private property rights, independent judiciary, growth oriented tax law, and liquid capital markets. Because of these benefits, foreign investment in the U.S. has increased approximately 40 fold over the last 4 decades on an inflation adjusted basis. The increased prevalence of foreign trade and the U.S.’s growing reliance on external financing have made foreign investment in the U.S. vital to the overall performance of the U.S. economy. In particular, foreign investment provides numerous salutary benefits which include: Job creation/economic activity due to t he establishment or expansion of foreign firms in the U.S.