Foreign Investors Value Boston Luxury Real EstateJune 8, 2013
Boston is an extremely desirable city for foreign real estate investors these days. I’m seeing real estate investors gobble up everything on the Boston luxury real estate market, from a single luxury unit in high profile areas like the Back Bay, Beacon Hill and the South End, to a chunk of brand new development properties. Their investment interests range from high end brownstones to full service buildings with lavish amenities or larger commercial buildings.
The Investment Potential of a Boston Condo
So, you may ask where these foreign investors are from and the answer is all over. Buyers are mostly from Asia, but they come from all over, including South America, Europe and Russia. The Boston condos they purchase are either for investment that they rent to locals, or for their children to attend schools in the area. If the property is for their children, investors tend to favor full service buildings with 24 hour security, unless a parent or relative is staying with them.
In all cases, the Boston homes are purchased with investment potential in mind. Size and price are not as much of a concern as the value is for potential growth. The newer construction projects tend to attract foreign buyers. Since the building is brand new, they don’t have to deal too much with breakdowns and maintenance problems. Also, there’s always a sense of excitement in every new Boston luxury real estate project.
Boston is always bursting with new projects, including recently completed buildings: The Mandarin, The Ritz and One Charles. There are several still under construction or being slated for construction, like Fan Pier and the new Millennium Towers, among others. Some foreign investors have even ventured into the development arena around the city.
Given a weaker economy and the riskier real estate market abroad, foreign buyers are more interested in investing in the US market with its future potential growth. Boston represents a very strong market for them with stable and growing industries such as education, health care, bio-tech/bio-med. These industries will not experience a slowdown even in the down market, as much as some other cities will and have struggled to regain momentum.
I’m available anytime to discuss investment opportunities and determine the next best Boston luxury real estate move for your portfolio.