Foreign investors plan to increase their overall real estate investment in 2005 but cut U.S. investments to 55% of their real estate portfolios, from 71%, according to a survey of members of the Association of Foreign Investors in Real Estate. Almost 60% said it has become "very difficult" to find attractive real estate opportunities in the United States, and they are looking to increase their real estate investment in Japan, Europe and Australia.
Survey respondents said 51% of their U.S. real estate investments would be in private equity and core real estate strategies. Respondents stated they plan to trim their REIT allocations by an average of 6%. Twenty-one percent plan to invest in non-core and alternative real estate investments, 31% plan to invest in operating partnerships or joint ventures, and 23% were looking for off-market deals or making unsolicited offers. The preferred property types are multifamily and retail properties.