Why Foreign Investors Dream of Owning U.S. Real Estate
For generations, foreign investors have viewed real estate America as the gold standard of stability. From London to Singapore, property ownership in the U.S. has symbolized financial security and access to the world's largest and most transparent market.
Even in 2025, the idea still has allure. The United States property market is not just a question of buildings, it's a question of balance in a system where contracts are enforced, titles are secure, and dollar-denominated profits compound with silent power.
But for the majority of foreign investors, the question still remains: How exactly do foreigners invest in United States property?
Between tax codes, regulations, and entity structures, the process can look intimidating, but it’s not out of reach.
By the end of this article, you’ll learn:
- How foreign investors legally buy property in the U.S.
- The best structures for compliance and protection.
- Why 2025 presents a strategic window for entry.
- How platforms like Raveum simplify global participation in real estate investing.
- What mindset separates speculative buyers from long-term wealth builders.
Why Overseas Investors Keep Coming Back to the US Real Estate Market
Despite higher borrowing costs, the United States property market remains the world's most popular destination for cross-border capital. Foreign investment in U.S. commercial real estate grew 14% year-over-year in the first half of 2025, led by investors from Canada, Singapore, and the UAE (Bloomberg, 2025).
Institutional clarity is a large portion of it. The U.S. offers what few markets can: enforceable ownership rights, clear pricing, and stable dollar income streams. In an era of worldwide volatility, these features have rendered real estate America an asset class of calm.
The second reason? Accessibility.
In contrast to other countries that restrict foreign ownership, the U.S. by and large allows non-residents to buy property - residential or commercial - provided taxes and reporting obligations are met.
CBRE's 2025 Midyear Market Outlook also supports this trend, with foreign investment recovering strongest to multifamily, logistics, and medical sectors. Institutional buyers are using this period to lock in value before interest rate normalization expected in 2026 (CBRE, 2025).
At its core, the U.S. real estate market is a rule-of-law market. It rewards clarity and long-term perspective, qualities that align well with global investors’ growing appetite for predictable returns.
Common Questions:
1. Can foreigners invest in U.S. real estate without living in the U.S.?
Yes. Foreign investors can legally own U.S. property without residency, provided tax filings and reporting requirements are met.
2. Is buying U.S. property from overseas risky?
Risk depends on structure and compliance. Using regulated entities, professional management, and proper tax reporting significantly reduces risk.
3. What is the easiest way for foreigners to start investing in U.S. real estate?
Fractional ownership platforms allow foreigners to invest in U.S. real estate with lower capital and simplified compliance.
How Foreigners Can Invest in U.S. Real Estate: Step-by-Step
1. Define Your Investment Objective
Before anything else, decide whether you’re pursuing yield, growth, or diversification.
Yield investors prefer stabilized assets like leased logistics centers or multifamily units.
Growth investors seek value-add opportunity or development plays.
Diversifiers desire dollar exposure and an inflation hedge in their home market.
Each demands various financing, structure, and horizons. For instance, a European investor may favor net-leased industrial product for secure cash flow, while a Middle Eastern fund would pursue long-term urban redevelopment.
2. Select the Appropriate Ownership Structure
Foreigners may purchase directly in their name or through entities like LLCs or Limited Partnerships.
Direct ownership is easier but subjects the purchaser to U.S. estate taxes.
Entity ownership via a U.S. LLC with foreign company ownership protects personal assets and facilitates exit.
Most investors form Delaware or Wyoming LLCs due to the favorable tax and privacy laws. Institutional investors often utilize layered structures with offshore holding companies and onshore SPVs for treaty and compliance optimization.
3. Set Up Your U.S. Financial & Tax Infrastructure
To transact legally, non-resident buyers need an Individual Taxpayer Identification Number (ITIN) and a United States bank account for operational payments, rent collection, and compliance.
Taxation occurs at the federal and, for certain, state levels. Significant legislation such as the Foreign Investment in Real Property Tax Act (FIRPTA) governs how taxation of gains on sale of property is handled.
However, several countries - including Singapore, the UAE, and the U.K. - have tax treaties that significantly reduce withholdings.
4. Financing and Leverage
American banks and mortgage providers do provide mortgages to international investors, though they typically limit loan-to-value (LTV) ratios to about 60%. Prepare for larger down payments and higher interest rates.
Or, international investors are turning more to fractional ownership platforms such as Raveum, which aggregate compliant international capital to invest in institutional-quality assets. This structure limits administrative burden without sacrificing transparency.
5. Property Management and Compliance Handling
Offshore ownership is possible, but only with the right partners. Investors can either hire a property management firm or invest in co-managed platforms with reporting and oversight baked in.
Compliance doesn't end at purchase; annual tax returns, AML documentation, and LLC renewals are all essential. A good cross-border accountant will save tens of thousands in tax disputes down the line.
An investment in U.S. real estate is not a transaction, but the beginning of a long-term system of trust, compliance, and cash flow. The best investors make structure a strategy, rather than an exercise in paperwork.
Why U.S. Real Estate Remains Attractive to Foreign Investors in 2026
1. The Return of Income Discipline
Years of speculation later, investors are reverting to income-based valuation. Average cap rates on U.S. commercial properties have widened 60 basis points since 2023, offering better entry yields, Bloomberg reports.
For international investors into U.S. real estate, it means that transactions now price risk more accurately. A well-leased property with 6% annual yield in dollars has the potential to outperform risky emerging-market assets with nominally higher yields.
2. Dollar Strength and Portfolio Stability
A dollar-denominated return is an overlooked advantage. For investors who receive other currencies, U.S. property provides a source of income and a hedge against home currency devaluation.
It's not just real estate investment - it's portfolio insurance with physical backing.
3. Sectors at the Leading Edge
- Industrial/Logistics: Driven by e-commerce and supply chain reconfiguration.
- Multifamily Housing: Increasing rents and undersupply in affordable housing markets.
- Healthcare Real Estate: Recession-resistant tenants and long-term leases.
Each of these sectors has seen reinvigorated international activity. New investment since late 2024 has targeted high-barrier, low-vacancy markets like Dallas, Miami, and Charlotte.
4. Platforms that Simplify Access
Raveum is part of this trend, simplifying cross-border real estate investment by making fractional access to stabilized American assets available. With compliance-driven onboarding, investors are exposed to dollar-income properties without the need to navigate complex tax registrations or management overhead.
This model transforms what has been a lawyer-intensive, multi-step process into a structured, transparent, and auditable investment experience.
How Global Investors Should Think About U.S. Real Estate Ownership
The classic investor asked, "Can I buy?"
The global investor of today asks, "Can I buy wisely?"
US real estate is not a market for speculators, it's a market that favors planning and patience. The most successful international investors understand that it's not leverage, but longevity, that compounds wealth here.
Platforms such as Raveum help foster this new mindset: access, education, and control for a global community of disciplined investors.
It's a move away from isolation to inclusion. From opportunity chasing to structure building.
In 2025, real wealth is not a matter of being everywhere. It's a matter of being specific - and the U.S. real estate market remains the most specific wealth-building instrument on the globe.
Frequently Asked Questions About Foreign Investment in U.S. Real Estate
1. Can foreigners legally buy property in the U.S.?
Yes. Foreign individuals and entities can legally purchase U.S. real estate while complying with tax and reporting laws.
2. Do foreign investors pay higher taxes in the U.S.?
They are subject to FIRPTA on sale, but tax treaties can reduce or offset the final tax burden.
3. How much capital is required to start investing?
Direct ownership often starts around $250,000, while fractional platforms allow entry from approximately $100.
4. Is 2026 a good time for foreigners to invest in U.S. real estate?
Yes. Market repricing has improved yields and reduced competition compared to 2022–2023 levels.
5. Which U.S. cities are most attractive to foreign investors?
Dallas, Austin, Miami, Phoenix, and Charlotte lead due to population growth and rental stability.
References
Bloomberg. (2025, September 12). U.S. mortgage rates hold above 6 percent, reshaping buyer behavior.
https://www.bloomberg.com/news/articles/2025-09-12/us-mortgage-rates-economy
CBRE. (2025, July 30). 2025 U.S. Real Estate Market Outlook – Midyear Review.
https://www.cbre.com/insights/reports/2025-us-real-estate-market-outlook-midyear-review