US investor expansion has caused many to seek foreign real estate acquisitions. Urged on by higher returns on investments made, many firms are investing in overseas funds that in turn invests in offices and other real properties at a higher rate compared to what was being done six years ago.
As of the latest data obtained for the first quarter of 2013, investors have poured out nearly US$2.6 billion into mutual funds and other exchange traded funds abroad. This is the largest inflow into these funds since the record breaking US$5.3 billion in new investments recorded in the first quarter of 2007, according to data obtained by Lipper, a company of Thomson Reuters.
One of the trending activities in 2012 was direct ownership of foreign real estate by American investors. In that year, US institutional investors put in US$38.71 billion into commercial properties located abroad, an increase from US$32.8 billion from 2011. This is still far off from the US$100 billion total investment done in 2007, just before the credit crisis hit, according to Real Capital Analytics, a real estate research company.
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