Ortalo-Magné Presents Survey Results on Global Real Estate

 Professor François Ortalo-Magné recently presented the annual Association of Foreign Investors in Real Estate (AFIRE) survey results at the group’s winter conference in New York City.

This is the 16th year AFIRE members have been surveyed, and the second year the survey was conducted by the Graaskamp Center for Real Estate at the Wisconsin School of Business, with Ortalo-Magné compiling and analyzing the results. 

According to Ortalo-Magné, this year’s survey results revealed that the United States remains the top global property market among foreign investors, with New York City and Washington, D.C. cited as the top two global cities for foreign investors’ real estate dollars. 

The survey also found that while the percentage of real estate planned acquisitions allocated to the U.S. remains roughly the same as 2007, slightly over 50 percent, the actual dollar amount is expected to increase by 16 percent. The number of those surveyed who find it “very difficult” to find attractive real estate in the United States is the lowest percentage since 2003, at roughly 23 percent. The survey reflects the buying preferences of members of the association. Ortalo-Magné estimates AFIRE members own or manage at least US$ 1.5 trillion of real estate around the world based on web searches he conducted with his students.

The AFIRE survey demonstrated the resilience of the U.S. market, which remains the preferred global country for foreign investors' real estate despite a growing interest in Asia. China took over as the country with the second-highest potential for real estate capital appreciation, with India falling to third place. The United States has always held the top spot, with 26.2 percent of respondents saying it has the best potential for capital appreciation, up from 23 percent of respondents in 2006.

Over the past two years, Ortalo-Magné has fostered a strong relationship with AFIRE which has been advantageous from several perspectives.  Wisconsin MBA Real Estate students have been allowed to attend AFIRE events.  This connection with AFIRE has provided opportunities for our students to interact with high level decision makers active in international real estate markets.  Ortalo-Magne’s contacts with AFIRE members have also provided leads for student internship and jobs with foreign firms.

Ortalo-Magné also credits his AFIRE colleagues around the globe for helping him identify interesting and unique destinations for the MBA international study trips. For example, while in Tokyo in January, the group toured the Nihonbashi Mitsui Tower, thanks to Kosei Murakami, president and CEO of Mitsui Fudosan America, whom Ortalo-Magné met at AFIRE events.  (The Nihonbashi Mitsui Tower won a 2007 ULI Award for Excellence.)

AFIRE is the only non-profit association for the foreign real estate investment community.  With over 180 members from 21 countries, its members are committed to preserving and promoting cross-border investment in real estate.