Categorized | Investing

Major Investors Moving Away from U.S. Real Estate

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In what has to be a crushing blow for the already depressed United States real estate market, several major billionaire investors have made it clear that they are favoring international properties over those in the United States. One of these billionaire investors, Sam Zell, has said that he no longer has any interest in United States commercial properties, and instead will put his money into the markets of Colombia and India.

Zell has plans to open hotels in both countries, as he sees great potential growth in their respective real estate markets. This is not the first time that Zell has sought properties outside of the United States, as he’s invested in such countries as Brazil, Mexico, and China in the last ten years. He has cited such factors as low interest rates and high inflation as his reasoning for bidding farewell to the United States market.

According to Zell, Colombia has the potential to show the biggest amount of growth within Latin America, and as such, he plans to build a chain of hotels within the country in association with Marriott. In fact, he has already invested nearly one hundred million dollars to build a hotel and shopping complex very close in proximity to the Bogota International airport.

It is the success that Zell and other billionaire investors have had in such international markets as Brazil and China that is leading many investors to take money initially set aside for United States properties, and to instead invest it in commercial properties of other countries. Needless to say, such actions do not give great hope as to the future of the United States real estate market.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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