The United States was voted as the most stable and secure country for foreign real estate investment by 56 percent of foreign investors surveyed, according to the 2007 Association of Foreign Investors in Real Estate (AFIRE) Foreign Investment Survey. The decreasing value of the U.S. dollar is encouraging foreigners to consider America when looking for personal vacation property or profitable real estate investments. This investment of stronger currencies could inject new life into states such as Florida, where desirable vacation property is plentiful but the property market is struggling.

AFIRE’s survey ranked the top five global cities for foreign investment and the top two slots are filled by American cities: New York City and Washington, D.C. New York rose from second place and Washington, D.C., came up from its fourth place finish in 2006. The United States is gaining ground as an international real estate investment option.

In line with this trend, foreign investment in Florida is flourishing. While 18 percent of real estate agents nationwide reported brokering at least one home sales transaction with international clients in 2006, 65 percent of Floridian real estate agents reported having done so during the same time period, according to the National Association of Realtors (NAR) Profile of International Home Buying Activity.

The largest percentage of international buyers in the state in 2005 came from the United Kingdom, according to the 2005 NAR Profile of International Home Buyers in Florida. British real estate buyers made up 33.3 percent of all international property transactions in the state, Western European countries made up 21.2 percent and Eastern European countries made up 3 percent.

Florida real estate continues to be very attractive to European buyers.   The low value of the U.S. dollar combined with ample inventories, creates an opportunity to find great deals on second homes and investment properties. 

Will increasing European investment have a positive effect on the Florida housing market?  

Let’s keep our fingers crossed.