We know that the expensive end of the real estate market in Los Angeles—both residential and commercial—has grown and grown since the end of the recession. We know that that's at least partly because of real estate investors snatching up properties in all-cash deals and at least partly because of richies from China or England or Saudi Arabia or other non-US countries sinking tons of money into the area (and often those two groups overlap). We know where non-Americans like to buy houses in LA (Beverly Hills, Bel Air, and other expensive neighborhoods) and where they like to invest in development (South Park, for one, where various Chinese firms have a total of three enormous megaprojects in the works). We know that investing enough money in LA development can net a green card for a non-citizen. But just how much money is coming into Los Angeles's real estate market from foreign countries? About $2.55 billion, according to the new 12 Cities report from real estate firm Savills.
The reports looks at various real estate trends in 12 major world cities and includes a breakdown of 2014 real estate deals that cost over $10 million. Los Angeles ranks fifth in the world for "cross-border" investments (after London, Paris, New York, and Tokyo). In 2014, there was $23.16 billion invested in deals over $10 million—which translates to very expensive houses and real estate development—and 11 percent of that money came from people outside the US. That's a lot less than London (at 68 percent), but just slightly below New York (at 13 percent)—overall, US cities tend to have a lot more domestic investment than other world cities. And now we know. For now!
· 12 Cities [Savills]
· Mapping Los Angeles's Shockingly Unequal Changes in Housing Prices Over the Last 10 Years [Curbed LA]
· The Super-Mega-Rich Love to Own Houses in Los Angeles [Curbed LA]
· The 9 Fancy LA 'Hoods Most Popular With Foreign Buyers [Curbed LA]
· Mapping 28 Projects on the Way in DTLA's Booming South Park [Curbed LA]
· Developers Building In Rich LA Neighborhoods While Getting Foreign Cash For Building In Poor Ones [Curbed LA]
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