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C'est Impossible: San Francisco passes Paris in survey San Francisco Business Times by JK Dineen, Reporter Date: Tuesday, January 3, 2012

 San Francisco has topped Paris in real estate investment survey

Global investors think San Francisco real estate will be a better bet than Paris in 2012.San Francisco has bumped out the French capital city to land the No. 5 spot in a new survey from the Association of Foreign Investors in Real Estate. New York leads the global rankings followed by London, Washington, DC, and Sao Paulo, Brazil.Although San Francisco has long been a top U.S. target for foreign investors, this is the first time in the 20-year-old AFIRE survey it has landed in the top five global spots.While 60 percent of survey respondents say they plan to increase their investment in U.S. real estate in 2012, that number is down from 72 percent last year. But, investors also say that “improved property fundamentals” and the repeal of Foreign Investment in Real Property Tax Act would have the strongest impact on their decisions to grow their investments in U.S. real estate. Survey respondents hold more than $874 billion of real estate globally, including $338 billion in the U.S. The survey was conducted in the fourth quarter of 2011 by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business.With 59 percent of respondents’ votes, the U.S. continues to be regarded as the country offering the most stable and secure real estate investments, besting second-place Canada by 43 percentage points. Respondents’ confidence level in the security and stability of U.S. real estate investments is the highest it has been since 2006. Although the United States is still regarded as providing the best opportunity for capital appreciation, its first-place score shrank from 64.7 percent in last year’s survey to 42.2 percent this year, with Brazil closing the gap in second place with 18.6 percent of the votes.“Foreign real estate investors have made clear there is considerable pent-up demand for US real estate awaiting better real estate fundamentals and relief from FIRPTA regulations,” said James Fetgatter, chief executive officer of AFIRE. “The US is poised to return to its ‘safe haven’ status if the investing environment improves.”J.K. Dineen covers real estate for the San Francisco Business Times.

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As a prop. owner in SF, This is good to hear, Grazia!

Good for you! I am here if I can help any of your friends/colleagues with sound information about the San Francisco real estate market.

Hi Grazia,

it's great to hear that. Which areas look most promising for real estate investment?

Ciao

Massimo

Ciao Massimo,

South of Market (SOMA)/South Beach/Mission Bay/China Basin are good areas to invest. I have just sold a condo in the new "Madrone" building at Mission Bay to a very savy European investor (3% deposit at signing of contract, 3% March 2012 and final pmt at deliver summer 2012) 

This part of town is very in demand with IT professionals because many IT companies have buildings in the area (Google, Twitter, Zynga etc.) plus there is easy access to the highway (Silicon Valley). Most of the buildings in these areas are exempt from rent control and therefore are very suitable as investments i.e buy to rent (please note that in San Francisco only buildings built after 1979 are not under rent control).

SOMA/South Beach and China Basin are already established areas although more new buildings are in construction or in planning. Mission Bay is a new development: Salesforce.com is building the global head office, UCSF has built a campus and starting a new hospital. It is also going to be the biotech hub of the Bay Area: Netkar, Pfizer, Genentech, QB3 etc have already facilities there. The forecast is for 18,000-30,000 people working in Mission Bay within the next 3-5 years.

http://www.sfredevelopment.org/index.aspx?page=61

http://www.mbaydevelopment.com/projects.html

 

The other aerea in demand is district 5 and in particular Mission Dolores, Noe Valley and Cole Valley. They offer easy access to the freeway for people who work in Silicon Valley but want to live in San Francisco (plus cute restaurants and coffee shops). Noe Valley and Cole Valley are lovely areas also for young families.

 

And of course the more traditional areas such as Russian Hill, Pacific Heights, Telegraph Hill, Marina, Cow Hollow, Presidio Heights and Nob Hill remain very appealing.

 

I am available if you need more information grazia.bennett@sothebyshomeshome.com or 415-2944244

 

Grazia

 

 

 

 

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