Real estate professionals have positive outlook
April 17, 2013
With the improving economy comes increased levels of optimism among real estate professionals. In fact, a survey conducted at Akerman Senterfitt's U.S. Real Estate Summit revealed 86 percent of respondents are feeling more optimistic after the first quarter of the year.
There are many reasons for real estate professionals to begin feeling better about prospects in 2013. Six out of 10 of respondents said multifamily development will be the most active market sector, while 55 percent believe the sector will return to the levels it was at roughly five years ago. Furthermore, economic uncertainties may no longer exist as 31 percent of real estate executives are forecasting foreign investors will fund a majority of commercial real estate acquisitions and equity throughout the year.
"Volatile markets and government policies have tested optimism over the last few years, but industry executives are finding creative avenues for growth," said Richard Bezold, chair of the Akerman Real Estate Practice Group. "Their inventiveness in core markets has led to the recovery of not only the real estate industry but also major cities across the U.S."
Increased levels of optimism can come with a big recovery in the commercial real estate market. Another report, this one from the Urban Land Institute and Ernst & Young, showed transaction volume in the commercial real estate in 2013 is expected to increase to $310 billion in 2013, then rise to $340 billion in 2014.
"After a prolonged period of uncertainty, we're seeing a revival of investor confidence as the economy continues to recover," said Dean Schwanke, senior vice president at ULI.