Updated: September 5, 2013
Industry Intelligence from First Research, a division of Hoover's (a D&B company)
Real Estate Growth Strengthens
US real estate demand is forecast to grow at an annual compounded rate of 5 percent between 2013 and 2017. Data Published: April 2013
Residential Quarterly Industry Update
Trend - International Buyers - Foreign appetite for US homes may be cooling slightly, but international buyers still account for more than 6 percent (or $82 billion) of US existing-home sales, according to the National Association of Realtors. That is a 17 percent decline in terms of dollar value, compared to the year before. A few factors have contributed to the decline, including economic conditions in other countries and unfavorable exchange rates. Others have been turned off by rising home prices, tight credit standards, and low housing inventories in the US. International buyers tend to prefer markets such as Florida, California, Texas, and Arizona. Traditionally, buyers from Canada and the UK have been big buyers in the US. However, reports indicate the makeup of foreigners searching for new homes in the US is becoming more diverse. Interest is growing from Indians, Nigerians, Brazilians, Chinese, and Russians, according to real estate listing site Trulia.Commercial Quarterly Industry Update
Industry Impact - Residential real estate brokers and managers continue to market to international clients. Professionals in the industry can win global business by expanding online services such as virtual tours and including listings in foreign languages.
Trend: Demand Strong for Medical Office Space - Medical office space is one of the fastest growing real estate sectors, driven by increased demand for off-campus ambulatory and urgent care facilities. Overall demand for medical office buildings will increase by 19 percent in the next five years, according to the Urban Land Institute. Industry experts anticipate the growth to continue as health care reform will likely contribute to a significant jump in patient volumes and an increase in demand for expanded facilities. In addition to expansion of health insurance coverage, the aging US population will create higher demand for medical services and facilities.
Industry Impact - As demand for medical office buildings continues, commercial real estate brokers will likely handle more deals, especially those involving medical joint ventures and partnerships between for-profits and nonprofit entities.