Foreign investment in NYC on the up.

The New York City real estate market is a hot bed of activity for foreign investment.

Waves of investors from around the globe are flooding New York City residential and commercial real estate.

According to an Association of Foreign Investors in Real Estate (AFIRE) report released this January, New York is the number one U.S. city for foreign investment in commercial real estate.

Major incentives attracting foreign buyers include strong market values, favorable exchange rates and the high potential for steady returns.

There is also a new trend of investing in high risk properties. In the past, there was greater caution with regard to diversification strategies outside of the core property types, as well as with creative financing structures, such as interest-only mortgages.

However, "value added" real estate is on the rise, indicating investors' desire to get involved in the New York City marketplace. Real estate alternatives seeing more investment action include joint ventures and off-market transactions.

Itzhaki Properties has done numerous deals for foreign investors in the past six months, including several residential properties in Manhattan and commercial spaces in the outer boroughs. Brokers are seeing a notable increase in activity and deals in these areas and interest is seen both by first-time overseas investors looking to break into the New York market, as well as by seasoned investors looking to expand their market share or diversify their property holdings. Traditionally, office and commercial properties have been at the top of foreign investors' wish lists.

Increasingly, real estate transactions are crossing international borders. In greater numbers than ever, foreign investors are seeking the representation of major New York real estate firms for their local offerings.

Currently, Itzhaki Properties is representing a 2,770 acre, ocean front hotel development property located in Majagua, Mexico. This listing is just one of the many examples of the boom in foreign transactions.

As for New York, city real estate has always been popular with foreign individuals, institutions, pension funds and banks.

Investors from European countries such as Great Britain, Ireland and Spain, as well as Korea and the Middle East, are steadily approaching brokers for investment and development projects. Now, more than ever, the real estate community is seeing a huge spike in interest in housing, storage facilities and real estate companies.

The amount of capital being invested in these real estate avenues is also on the upswing, with large shares of property being acquired by investors.

Most recently, Itzhaki Properties has been tapped by foreign investors interested in commercial property in Manhattan. Many investors look forward to the rental income in a strong, healthy market. New York City provides the perfect combination of culture, entertainment, quality-of-life and a safe environment that is attractive to both buyers and sellers as an opportune community in which to invest.

To savvy investors, this translates into long-term property value appreciation.

Underlying the recent attraction to the New York marketplace are historically low interest rates. With the financing readily available, and a global economic surge, right now it's prime time in New York City and investors are on the move.