The US remains to be the preference of the majority of international commercial property investors this year, but has lost its ground to second-ranked Brazil, based from a survey.

Although the US provides the most protected and constant opportunity when it comes to commercial property, investors stated that rental improvement and occupancy development and the cancellation of the foreign investment in 1980 would have the major effect on their investment assessments, as stated in AFIRE's (Association of Foreign Investors in Real Estate) 20th yearly survey.

In the past, investors of commercial property in the United States have concentrated on gateway places including Los Angeles, San Francisco, Boston, Washington and New York, increasing prices and yields.
For the meantime, Brazilian commercial real estate, with its growing economy and safer investment setting, has turned out to be the top choice for international investors. Sao Paulo, the largest city in Brazil, increased its ranking as the 4th top city in terms of 2012 property investment dollars.

The US remains to be extremely attractive and is second to the United Kingdom in terms of drawing nearby investments in 2011, based on the preliminary records of Real Capital Analytics.

According to James Fetgatter, the chief executive officer of AFIRE, the downbeat of this is it does not guarantee lots of capital increases since the major markets are completely priced by now. Brazil will absolutely not replace the United States. Brazil is currently regarded as a safer location to invest in and a country wherein people can have capital increases and beneficial yield. The survey respondents of the Association of Foreign Investors in Real Estate hold over $874 billion of property worldwide, including in the US with $338 billion.

Almost 60% of the total respondents declared that they are planning to raise their investment in the real estate in the United States in 2012, a decrease from the 72% figure in 2011. Certain 42.2% said that they are assuming that the US would provide the most excellent opportunity in 2012 for their commercial property price investments to increase, a decrease from the 64.7% record in 2011.

The US lost its ground to Brazil, with 18.6% respondents claiming that the property market of Brazil provided the best increase opportunity in favor of their investment money. That is an increase of 14.2%, which moves Brazil from 4th to 2nd place, based on the annual survey of the Association of Foreign Investors in Real Estate.

A total of 70% of respondents chose at least China, Turkey, Brazil and the United States as their first choice, while the rest of respondents had top selections from 13 other nations all over the world. Respondents stated that they would further invest in the commercial real estate of the United States provided that the basics of occupancy and rent development were stronger.

Another United States barrier respondents mentioned was the FIRPTA (Foreign Investment in Real Property Tax Act). This 1980 act, initially intended for the protection of farmland from overseas ownership, puts foreign purchasers to both local and domestic taxes once they put up their investment for sale, expect if their mother country has a taxation agreement with the US.