The recent release of the results of the 2017 survey taken among the members of the Association of Foreign Investors in Real Estate (AFIRE) have led some to wonder if New York is losing its appeal among foreign real estate investors.

New York was bumped from the #1 spot in the ranking of top global cities to #2 to make way for London, which climbed from the #3 spot to take the title as top global city for 2017. Both New York and London have attributes as locations for foreign investments – some of which include their recognition as the top financial centers of the world, their use of the English language and cultural aspects. London’s shift to the #1 spot has been attributed to a few larger investment sales this year and less concern among foreign investors on the impact of Brexit, which was a major concern in 2016’s survey. Meanwhile, there has been increased caution by foreign investors on U.S. investments due to over supply in some markets and possible political and economic “missteps” that could potentially negatively affect the financial markets, and ultimately real estate.

In the ranking of top U.S. cities, New York now shares the title with Los Angeles, which moved up from the #2 spot. This increased confidence in Los Angeles among foreign investors has to do with the fact that industrial properties were ranked as the #1 property type by investors mostly due to increased online shopping, which is expected to continue to grow over the next few years. Cargo coming into the Port of Los Angeles represents nearly half the cargo coming into the U.S. making it the go-to location for industrial investments.

Looking at these results, the reasons for the shifts in rankings, and the results of several other rankings, there seems to be no reason for owners, landlords or members of the NYC real estate industry to be concerned with a lack of appeal. The U.S. ranked as the #1 country for stable real estate investments and countries providing the best opportunity for capital appreciation, while the UK ranked #4 and #5 respectively. New York ranked #2 on the top global city list while LA ranked #4. Multifamily properties ranked #2 for top U.S. property types followed by office and hotel properties. New York continues to be the most attractive location for foreign investors in multi-family properties due to population growth, rent growth and the high incomes that support it, and is equally attractive to investors in the office and hotel markets.