Real estate executives have turned more bullish on the real estate market as it continues to attract the interest of foreign investors, a new study from law firm Akerman LLP found.
The Akerman U.S. Real Estate Industry Outlook Survey found that around 60% of real estate executives interviewed were more optimistic about the market now than a year ago. The report noted factors that contributed to this rising hopefulness, including the continued surge of foreign investors and signs that the industry is better capitalized for potential downturns.
"As 2015 unfolds, the industry is seeing an all-time record of institutional equity and global equity competing for core real estate assets," said Richard Bezold, chair of Akerman's real estate practice group. "As investor appetite grows and deals become more aggressive, the industry will increasingly need to focus on maintaining rationality."
Other factors that contributed to higher confidence range from improvement in the U.S. economy, low interest rates and availability of equity capital.
Meanwhile, for the first time in six years, the biggest source of concern among respondents was the global economy at 23%. Previously it was lawmaker decisions, with government policies ranking as the top source of concern for 34% of survey-takers in 2014.
The report also noticed that nearly 60% of the executives interviewed felt that the multifamily sector will lead the industry through the recovery, with the single-family sector coming in second.
Executives also saw promise in the senior living and healthcare real estate markets, given the aging baby boomer population. Other trends the survey noted was an increased focus on urban markets due to millennial preferences and the influence the continued recovery in the job market will have.
Akerman's annual survey polled 176 people in March and was first conducted in 2010.