Foreign investment shines light on Phoenix
Real estate in Phoenix is stabilizing for the first time since the housing market bubble burst, partly because of the foreign investment in commercial real estate. For the first time, Phoenix was within the top 10 United States markets for foreign investment in the second quarter.
Investment experts say this a great sign for the recovering real estate market in the Phoenix metro area. In the second quarter, commercial-real-estate investment totalled $317 million placing the city at No. 10 on the list. Experts are wary of too much foreign investment, which would take away from the local economy. However, these investments will likely help to bring the market in Phoenix back to the state it was at in the early 2000s.
"This is where these people want to park their money for a while,” economist Rick Merritt said. “We have a lot of underpriced homes right now and it is certainly an attractive place for people from colder climates, that's for sure."
Since January 2010, there have been 11 commercial real estate purchases of at least $10 million within the Phoenix metro area.