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Key Takeaways:
1. Foreign family offices are maintaining strong interest in US real estate despite the current political uncertainties.
2. Hedging strategies are being used by some international real estate investors to protect their returns from currency fluctuations.
3. 44% of global family offices are expected to invest more money in US real estate in 2025, which reinforces the global appeal of US real estate.
Despite shifting global conditions, foreign family offices continue to view US real estate as a reliable and attractive real estate market.
Recent insights from leading investment managers show that international real estate investors are not pulling back significantly, even as policy discussions and political uncertainty persist
Eduardo Karpat of Poverni Sheikh Group, who manages investments in the US for over 200 global family offices, noted that while raising new capital has become more challenging, most investors have not paused their activity. Only a few have inquired about hedging strategies against the dollar, suggesting confidence in the long-term outlook.
What is Hedging? Hedging is a way for foreign real estate investors to protect themselves from currency exchange rates. Since US real estate deals are done in dollars, an investor from Europe or Latin America may worry about how much those dollars will be worth when converted back home. By using a financial contract, they can “lock in” today’s exchange rate for the future. This ensures they don’t lose money just because currencies move up or down, giving them more predictable returns.
Karpat explained that during the pandemic, and with sharp rises in interest rates, many European and Latin American investors postponed decisions. Today, however, they are less hesitant, with the US market still offering stability compared to their home countries.
Nicolas Ibanez, co-founder of New York-based Drake Real Estate, echoed this sentiment. His firm, which traditionally sources capital from Latin America, recently closed its largest US real estate fund at $515 million, with the majority of investors returning from previous rounds.
While some families expressed concern over proposed tariffs and taxes on foreign investments earlier this year, those measures were removed, allowing confidence to remain intact.
Adding more weight to this trend, Knight Frank’s Wealth Report 2025 shows that a whopping 44 percent of global family offices are planning to increase their real estate investment holdings this year. This underscores the pull that the US real estate market has on foreign real estate investors.
Overall, both managers highlighted that strong demographic trends, resilient demand, and the scale of the US economy continue to reassure foreign families. While short-term caution exists, the US remains the preferred destination for family office capital.
