According to CBRA and Real Capital Analytics, property transactions by foreign nationals grew by 20% per annum since 2010. The biggest beneficiary? The United States.
The rate of property transactions in the US that involved interest investment by international buyers increased from 4.1% or 192,500 buyers to 5% or 284,500 buyers in the past five years through 2017.
The US wasn’t the only country that increased its percentages of international buyers. Spain grew its international property buyer base from 11.2% in 2013 to 13% in 2017. (Remember that Spain is a much smaller country than the US.)
Experts in global finance expect international property investment to continue to increase in this coming decade. Here are some of their reasons:
There simply is more money available.
- The International Monetary Fund (IMF) expects the global GDP to continue growing at the current rate of +3.7% from 2018-2022.
- Countries that have a high number of property investors abroad are exhibiting more impressive growth.
- According to Reuters, China invested $42.2B in 2017.
- According to Knight Frank, the number of millionaires in both India and China are expected to double by the year 2026.
- There is an increasing number of international tourist arrivals.
- International tourist increased from 918M in 2008 to 1.24B in 2017.
- According to the World Bank, the number of airline passengers grew from 2/209B in 2007 to 3.696B in 2016. This number is expected to grow +4.7% over the next 20 years.
- The International Air Transport Association (IATA) attributes the Pacific Rim with 33.6% of international air travel.
- Europe is the most popular international tourist destination.
- In 2016, 616M international tourists traveled to Europe.
- The Euromonitor International anticipates the numbers of international tourists traveling to Europe to increase by 25% from 2018-2025.
- The most popular European destinations for international travelers are
- Remember that demand for property increases with growing tourist numbers…international tourists by holiday homes, apartments and invest in short term rentals.
- There is an increasing number of immigrants.
- The most popular immigrant destinations are Europe and the US
- The number of residence permits granted between 2008-2016 increased +32%
- Immigrants coming into Europe came from
- Immigrants coming into the US came from
- Dominican Republic
- The Golden Visa Program bolsters demand for property abroad.
- For property in the range of 250,000 Euros, Greece and Latvia are the most popular
- For property in the range of 500,000Euros, Spain and Portugal are the most popular
- There are more international students
- According to the Organization for Economic Co-operation and Development (OECD), the number of international students more than doubled from 2007-2015.
- The US is the most sought after country in which to study.
- From 2016-2017 there were +1M international students studying in the US
- The number of international students has been growing 6% annually during the last decade.
Bottom line, the greater numbers of international tourists, immigrants and students in the US, the greater the demand for property here in the US by those tourists, immigrants and students (and their families). Be more than ready for them.