Patience is a virtue was the message from PWC’s Emerging Trends in Real Estate for 2012 report. PWC in conjunction with Urban Land Institute surveys 950 leading real estate experts and publishes a report that confirms my thoughts. Here are the key highlights:
- Real estate professionals must resign themselves to a slow, sporadic economic recovery that will be confined largely to markets that have 24-hour transportation hubs with global access.
- The sluggish economy and unemployment continue to weigh down the real estate market – heck, the economy and unemployment are weighing down everybody.
- We have a new catchphrase the “Era of Less” – everybody is tightening their belt. This includes corporations, governments and individuals.
- In 2012, they are expecting more properties up for sale, but fewer buyers due to the economic uncertainty. I personally would include the presidential elections as a reason many investors will sit on the sidelines next year.
- It’s all about the fundamentals of real estate: location, location, location. The best investor bets for 2012 should have low unemployment and be trophy assets within cities along important global commercial routes.
This is not a glowing outlook for 2012 and shows the frustration real estate players have been experiencing over the past several years. This survey does not even consider the over-leveraged office buildings that have notes coming due in the next 18 months. My prediction for 2012 – it’s better to be a tenant than a landlord.
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