Commercial real estate could see promising gains by 2014

A recent survey of a number of industry experts reveals that broad improvements are expected throughout many sectors of the commercial real estate market until at least 2014, the Urban Land Institute reports.

A recent survey of a number of industry experts reveals that broad improvements are expected throughout many sectors of the commercial real estate market until at least 2014, the Urban Land Institute reports.

The survey, titled the "ULI Real Estate Consensus Forecast", examined the opinions of 38 real estate experts and economists about what they expect to see in the industry's future. It was found that these experts anticipate a 50 percent increase of commercial property transactions during the period.

Additionally, the amount of insurance written for commercial mortgage-backed securities is expected to double in volume, while 8.5 to 11 percent annual growth on real estate assets and real estate investment trusts is also expected.

Meanwhile, real estate data also indicates that the rate of housing starts could more than double by 2014, resulting in a spike in home prices by as much as 3.5 percent. For now, prices are expected to remain relatively flat, but are expected to start to appreciate by 2013. 

However, as the housing market and economy start to stabilize, it could result in rising mortgage loan rates. Currently, Freddie Mac reported that mortgage rates are hovering below 4 percent, and are anticipated to remain close to this level until at least 2014.



blog comments powered by Disqus