How are Brexit 421A & EB-5 going to impact foreign investment in the US real estate market?
December 14, 2016
Panelists discuss the impact of Brexit, 421 A and EB-5 on foreign investment in the United States, and the effects of that capital on development in gateway cities.
Hugh Macdonnell: We think and believes that there's a strong trend that we will see of non-US capital continuing to come and want to invest in the US. A lot of it's quite targeted to a narrow group of markets, but we think that's going to continue and we think that over a sustained period of time actually will provide some underlying capital markets support. It’s also true I think that US institutional investors have slowed down in investing domestically and some of that is just simply the fact that they are at allocation, right? Real estate has performed very, very well relative to stocks and bonds. So there's some denominator-ish kind of issues that they're facing. But the non-US capital flows we think will continue over a really enduring period of time. Just because US real estate's performance relative to alternatives around the world is very, very good and projected to be so for a longer period of time.