Foreign investors wake up to non-gateway real estate markets

WealthManagement.com quoted a Canadian multi-billions property investor in the USA. A recent AFIRE survey of investors from 24 countries found that 60% of respondents expect to increase their investment in tertiary cities in the next 3-5 years. That number is 80% for secondary cities. In 2014, about 25% of cross-border investments flowed into non-gateway markets. In 2020, it was 48%. YTD in 2021, is close to 60%.

Investors are attracted to growth prospects, less competition to the secondary and tertiary markets.   With assets such as stabilized multifamily apartments paying 8% sometimes 10% cash-on-cash, and yields so low (much lower in many overseas markets), can we expect this flood to continue?

We believe so and Skytian Capital has and will continue to both actively and passively invest in secondary and tertiary markets in this asset class.

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To read the full article, click here: https://www.wealthmanagement.com/investment-strategies/foreign-investors-gravitate-non-gateway-markets