New reports have revealed that Israeli institutional investors have been pouring more money than ever into United States real estate investments. However, a closer look at these numbers reveals that these Israeli investors are more specifically investing money into luxury New York City real estate investments. According to reports, Israeli, only accounts for five percent of the foreign real estate investments in the United States. However, this number is growing and it is particularly impressive given how small of a country Israel is. It is also significant given the way that the company funnels foreign cash specifically into New York City real estate investments, as a majority of their investments are going into luxury properties in this market.
According to some Israeli investors, there is a certain appeal when it comes to US real estate as the real estate in their home country is not enough to satisfy the portfolios of wealthy investors. When it comes to cities in the United States that are not only easy to travel to, but that offer prime luxury real estate investments, there is no country that can offer the same type of appeal that New York City can.
Currently there is about $27.9 billion in foreign investments in the United States and while other countries such as Canada, China and Switzerland are topping the charts, Israel in still in the top ten countries that are investing in U.S. real estate. For those looking to the NYC market there is more luxury real estate available in this area than in any other region of the United States. Many invest solely for the monetary value while others look to the NYC luxury real estate market for second homes to stay in during business transactions. No matter what the reason, many foreign investors have found that while NYC luxury real estate is expensive it is more affordable per square foot than investment properties in cities such as Hong Kong and London are
The number of investors from Israel has also grown from 2011 to 2012, even though the amount of international investments in US real estate went down. If this trend continues, as many expect it will, investors will see a stronger and stronger influence of Israeli investors finding their way into the NYC luxury real estate market in the coming years.
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