Survey: Apartments to be Top Investment for 2012

Multi-family is the most favored real estate investment, according to a 2012 Outlook survey by Jones Lang LaSalle.

Rising rental rates combined with declining home ownership rates point to strong apartment investment activity in the year ahead,, according to respondents of Jones Lang LaSalle/RealShare Apartments Outlook 2012 Survey. The survey, completed by more than 150 private investors, real estate brokers, developers, REIT and institutional investors, was conducted recently.

While core assets in primary coastal markets remain the top draw for investment, survey respondents are also expressing a desire for value-added properties and fielding ever-increasing competition from foreign investors.

“It’s clear that multifamily is the sector to watch now, and in 2012,” said Jubeen Vaghefi, Managing Director and leader of Jones Lang LaSalle’s Multifamily Investment Sales team. “During the past year, apartments have shown a vitality that’s unparalleled among the other asset classes. This survey’s results only solidify that perspective as we watch investors chase yields in markets that previously have been under the radar.”

Los Angeles, San Francisco, Dallas, San Diego and Phoenix are the top five cities in which respondents say they are most likely to invest in the year ahead—beating out 2010’s heavyweights of New York City and Washington, D.C. On the sell side, respondents say Las Vegas, Los Angeles, Washington, D.C., Atlanta, Houston and Phoenix make up the cities in which they’re most likely to divest themselves of properties.