More Property Investors Expect To Be Active This Year, Lured by Price Changes

Despite challenging conditions, U.S. real estate investors are planning to return to the property market this year with a preference for cities with an established track record of increasing value.

More than 60% of investors expect to add to their property portfolios, according to CBRE's 2024 U.S. Investor Intentions Survey. That's a sharp pivot from last year, when only 16% of investors planned to buy real estate.

About 87% of investors said higher-for-longer interest rates were their biggest concern this year when it comes to real estate, followed by tighter credit availability and loan terms, as well as differing price expectations of buyers and sellers.

Still, most investors expect deal activity to begin to recover in the second half of the year. Reasonable price adjustments and more distressed opportunities are important to investors buying. Multifamily and industrial real estate continue to be the preferred property type for investment in 2024, according to the survey.

Read the full article here.