Investors have their eyes on Texas -- mainly Houston -- as they seek some of the highest returns on their real estate investments. 

Houston ranked No. 4 in the U.S. and No. 5 worldwide for the highest number of real estate investment dollars in 2012, according to a report by Jones Lang LaSalle. Over the past 18 months, Houston has seen $8.8 billion in real estate investments, a 32 percent rise over 2011, according to the report. 

A strong job market is helping to fuel the demand. Expansion in health care, distribution facilities, and energy services are offering investors confidence in the sustainability over the long term of the market. 

The city’s strong office space, hotels, retail situation, and leasing will be major contributors to its growth throughout the year for real estate investors. Its multifamily market also is expected to boast 8,000 new deliveries in 2013 -- nearly triple the number in 2012, according to the report. Houston will also see a rise in new renter households that is expected to lead the nation into 2017. 

"The Houston office market is a value play still for investors, relative to the coasts,” says Rudy Hubbard, managing director of Jones Lang LaSalle’s Capital Markets. “Sales activity is expected to remain solid in 2013 and beyond as institutional grade investors continue to canvass the Houston skyline for sound investment choices with stable returns on investment."

Source: Housing Wire