A cooling economy and government regulations putting brakes on investment in U.S. real estate China has become the dominant global power when it comes to overseas real estate investment. According to data from JLL, a global commercial real estate service, the county became the worldwide leader in cross-border real estate investment, hitting $33 billion in overseas commercial and retail investment in 2016. Much of that money is fueling development in the U.S., according to Cushman & Wakefield, making up 29 percent of the total foreign investment in this country?s commercial real estate markets, or $19.2 billion. Hotel investment alone totaled $8.6 billion.
But could that huge capital flow and financing source for U.S. developers begin to dry up" Many analysts and researchers are seeing signs these record-setting investments may be slowing down, especially in the first nine months of the year 2017, which may have a cooling effect on some of the larger U.S. real estate markets. Due to a combination of new capital restrictions and the prospect of a slower economy, total Chinese investment may drop by as much as 20 percent this year, according to property search site Juwai. Government capital controls and investigations are also hamstringing investors. According to Real Deal, Chinese officials have been investigating some of the largest investors, such as Anbang Insurance Group, HNA Group, and Fosun International, which have collectively poured billions into the ...