Foreign Money is becoming more confident!

Foreign investors are more confident about the U.S. real estate market and expect to spend significantly more this year than in 2008, according to survey results released this week by the Association of Foreign Investors in Real Estate.

Foreign lenders plan to increase real estate loans by 54 percent globally and 58 percent in the United States based on transactions completed as of October, the report found. Foreign equity investors plan to increase their investment activity by 40 percent globally and 73 percent in the United States.

“During the past year, AFIRE members generally took a measured stance toward new acquisitions” because of concerns about valuation and the economy, said C. MacLaine Kenan, the association’s chairman. “As they expect more favorable investment fundamentals to return in 2009, our members are poised to move more aggressively on acquisitions.”

More than half of survey respondents said the United States provides the most stable investment climate and more than one-third said it has the best opportunity for capital appreciation. Next were Germany, the United Kingdom, China and Japan.

Globally, Washington, D.C. reclaimed its status as the No. 1 global city for foreign real estate investments, followed by London, New York, Tokyo and Shanghai.

Other key survey findings include:

* The top U.S. investment cities were Washington, D.C., New York, San Francisco, Los Angeles and Houston.

* Apartments were the preferred U.S. investment property, followed by office, industrial, retail and hotel. Office had been No. 1 for the past two years.

* Nearly three-quarters said a U.S. property’s “green” features influenced their purchase decision and were worth a rental premium.

* India and Brazil were named the top emerging markets.

In October, the association surveyed its nearly 200 members, who together own $371 billion in U.S. real estate and $1 trillion globally.