Boston, MA (PressExposure) October 18, 2011 -- Real estate investment in the US is benefiting from the efforts of the government to boost mortgage lending, which in turn is boosting the economy, according to Alternative Asset Analysis (AAA).
AAA's comments follow the publication of new figures showing that real estate investment in New York has overtaken London as the biggest market. As the demand for alternative investments increases as a result of the unstable stock markets, the number of people looking to put their money in the safer asset of real estate has risen and the US market is extremely popular.
As more and more investors understand the importance of the biggest and best real estate, they are opting to put their cash in the big cities, such as New York, Boston, Chicago and Atlanta. New York has taken the number-one spot for real estate investment, which was formerly held by London, which has suffered as a result of less lending from banks in the UK, claims AAA.
The alternative investment advocacy group's analysis partner, Anthony Johnson, said, "It's not too surprising that New York and the US market in general is feeling the benefits of the US government's efforts to boost the property market through helping banks to continue to offer mortgages."
He added, "Real estate is still seen as an attractive option for those looking to diversify their portfolios to risk." The stock markets have been particularly volatile in recent months and investors are losing large sums of cash overnight as a result. Providing the US economy continues to slowly recover, the real estate markets looks promising. Other options for keen alternative investors include forestry, through firms like Greenwood Management, and private equity investment.
Total investment in the New York area real estate sector in the 12 months to August this year increased by an impressive 166 per cent to $29.7 billion. The figures were compiled by real estate experts, Cushman & Wakefield.