The Counselors of Real Estate, “a group of real estate professionals who hold the CRE designation and seek to offer unbiased guidance on real estate topics,” has released its annual list of major trends that are sure to affect the real estate industry, both directly and tangentially.
We’ve been talking about some of these trends recently, like those around millennials and urbanization. But there are others on the list that we think deserve some time in the spotlight as well. For example, as described in a recent article from Realtor Magazine Online:
- “Energy Affecting Development: The instability in the oil industry has not only been a threat to global economic security, it also has led to the restriction of commercial real estate debt in some areas.
- Implications for real estate:According to the CRE, oil instability—currently at its highest level in 50 years—stunts economic growth and job opportunities in areas where production is prevalent. Demand from China could turn this around, but it remains a volatile market that could affect development.
- Shifts in the World Economy: In response to economic and political uncertainties, the International Monetary Fund amended GDP growth to spiral downward for much of the globe in 2016 and 2017.
- Implications for real estate: The CRE sees China as the primary competition in this sector, having capped a five-year real estate investment total to more than $110 billion. They caution that economic deceleration could lead to lower investment in infrastructure worldwide.”
What do you think? Did these trends or any others in the article surprise you? Tell us in the comments below!