Overseas Investors Report Uncertainty, AFIRE Finds

(Illustration courtesy of AFIRE)

Cross-border investment dynamics, climate change trends and zoning reform are top-of-mind for global institutional investors, according to AFIRE, the association for international commercial real estate investors.

AFIRE, Alexandria, Va., released it its Fall/Winter 2024 International Investor Survey Report, capturing the latest commercial real estate investment insights from global institutional investors from 25 countries, who represent approximately $3 trillion in real assets under management.

The survey covered U.S. presidential election implications, climate change trends and housing-related topics on the horizon for global investment into U.S. real estate.

AFIRE CEO Gunnar Branson noted the report points to the uncertainty felt by cross-border investors. “Geopolitics and conflicts around the world weigh heavily on many investors’ minds, as do new taxes and regulation,” he said. “But with the election over, we can start to focus on the realities of the moment—especially the real estate risks and the opportunities likely to be found in 2025.”

Themes addressed in the survey include how newly proposed U.S. policies will have global implications, how partnerships and alliances will reshape cross-border activity in 2025, housing affordability and availability and how climate trends are already transforming investor strategies.

Other report highlights include:

82% believe all types of multifamily development should be prioritized to alleviate U.S. housing availability and affordability.

81% agree there is a visible point on the investment horizon where climate change will have a meaningful impact on migration.

67% of respondents predict that the U.S. election decision will be detrimental to cross-border investment activity.

43% of investors believe that global politics and trade issues will have the greatest impact on cross-border investment over the next year.