Real estate industry leaders offered a bullish industry outlook for 2017 and beyond, KPMG LLP reported.
According to KPMG's 2017 real estate industry outlook survey, most responding executives expect the U.S. real estate market to see continued growth in 2017 and beyond, and as such, they plan to increase their investments in the sector this year.
Surveyed senior commercial real estate executives believe U.S. economic conditions will be the same or better in 2017 compared to 2016, expect real estate fundamentals to improve, and expect their companies to be able to find funding for real estate transactions and have robust access to equity capital.
In particular, 52% of survey respondents cited improving real estate fundamentals in 2017 as the key driver of revenue growth at their companies, 91% expressed optimism about access to equity capital and 51% said they expect increased foreign investment in U.S. real estate this year.
"A growing U.S. economy, coupled with healthy real estate fundamentals and strong access to financing and capital, make real estate leaders optimistic about a continued 'boom' in the U.S. market," Greg Williams, KPMG's national sector leader for building, construction and real estate, said in a release.
In terms of strategic initiatives for 2017, 41% of survey respondents said they expect to invest significantly in organic growth, including in geographic expansion, product development and pricing strategies, and 58% said they will pursue cost-related efforts to improve bottom-line results.
The survey, however, cited uncertainties surrounding regulation under the new U.S. administration, interest rates and cybersecurity as the top three challenges facing real estate executives in 2017.