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Here`s a review of an article that you may find interesting-US Perspective-Fundamentals Still ApplyReal Estate Downturn Analyzed – Top Markets & StrategiesPricewaterhouseCoopers
21[sup]st October 2008
A report titled Emerging Treads in Real Estate released by Urban Land Institute (ULI) based on views of more than 600 leading real estate experts, including investors, developers, property company representatives, lenders, brokers and consultants expects financial and real estate markets in the U.S to bottom in 2009 and flounder for much of 2010.
According to industry expert’s real estate industry is facing its worst years since 1991 – 1992 industry depression; property values have declined 15 – 20 % from their peak in mid 2007. The ongoing decline in property value, more and more foreclosures and declining economy will squeeze property cash flows.
Real estate industry in effected by multiple diseases, many property owners are sinking in debt; lenders are hesitant to lend, property income flows are shrinking.
Technically and historically real estate markets bounce back and they will do the same this time as well but expect to see the market coming back in the near future.
The reports list apartments in core urban markets near mass transit as the #1 buy. The report also point that commercial properties will the 1st[/sup] to recover.
In order to stabilize market Lenders must force the distressed owners to become motivated seller, Debt capital needs to flow, Regulators need to restore confidence in the securities market and economy needs to improve but one should forget the quick fix.
During 2009 experts advise investors to be vigilant, opportunities will come at significant discounts. Experts also advise investors to buy discounted loans, invest in maturity defaults, publicly held real estate investment trusts and focus on 24 hour coastal cities.
Experts also advise investors to buy and hold multi-family homes, offices, hotels and residential building lots.
Report also suggests investors to buy distressed condos in urban areas near transit and focus on neighborhood retail centers with strong grocery anchors and chain drug stores.
21[sup]st October 2008
A report titled Emerging Treads in Real Estate released by Urban Land Institute (ULI) based on views of more than 600 leading real estate experts, including investors, developers, property company representatives, lenders, brokers and consultants expects financial and real estate markets in the U.S to bottom in 2009 and flounder for much of 2010.
According to industry expert’s real estate industry is facing its worst years since 1991 – 1992 industry depression; property values have declined 15 – 20 % from their peak in mid 2007. The ongoing decline in property value, more and more foreclosures and declining economy will squeeze property cash flows.
Real estate industry in effected by multiple diseases, many property owners are sinking in debt; lenders are hesitant to lend, property income flows are shrinking.
Technically and historically real estate markets bounce back and they will do the same this time as well but expect to see the market coming back in the near future.
The reports list apartments in core urban markets near mass transit as the #1 buy. The report also point that commercial properties will the 1st[/sup] to recover.
In order to stabilize market Lenders must force the distressed owners to become motivated seller, Debt capital needs to flow, Regulators need to restore confidence in the securities market and economy needs to improve but one should forget the quick fix.
During 2009 experts advise investors to be vigilant, opportunities will come at significant discounts. Experts also advise investors to buy discounted loans, invest in maturity defaults, publicly held real estate investment trusts and focus on 24 hour coastal cities.
Experts also advise investors to buy and hold multi-family homes, offices, hotels and residential building lots.
Report also suggests investors to buy distressed condos in urban areas near transit and focus on neighborhood retail centers with strong grocery anchors and chain drug stores.