NREI: In the current market, in
which real estate fundamentals remain soft in many property sectors but investment activity is high, what issues do your members face?
Not exact matches
The Paris - based OECD warned that «there is a risk that a prolonged period of easy finance could result in a price bubble,»
which may endanger French banks [5], while Hervé Boulhol, the OECD's France economist, warned against treating French
real estate as a safe - haven and that the property market's powerful rise without a corresponding rise in income «may signal a bubble phenomenon, as a bubble is a disconnection with
fundamentals.»
And to date, little about the past few years of hyper - appreciation in
real estate prices — greater than that of Bubble 1.0 — has little to do with
fundamental, end - user, shelter - buyer demand for houses «in
which to live».
Digging a little deeper, the numbers reveal
which markets are leading the pack in
fundamental categories that drive
real estate demand:
The only
fundamental difference between a short sale and any other residential
real estate transaction is that your lender has agreed to accept a payoff
which is less than what you owe them.
Determining the value of a hotel's
real estate is a complex challenge
which involves evaluating various
fundamental factors such as size and location.
A prudent
real estate investor will look at an investment not only with regard to its sector
fundamentals, but also with regard to the currency in
which the transaction is done, especially if the repatriation of returns (such as rental income or refinancing proceeds or sales proceeds) occurs into a currency other than sterling.
So far, he says, the deteriorating
fundamentals have not been an impediment to private capital sources,
which are still aggressively chasing
real estate.
The growing investor demand for floating - rate CMBS,
which has commonly included mezzanine financing, demonstrates that private
real estate investors have confidence in underlying commercial mortgage
fundamentals.
The challenge is finding a partner that has institutional - quality deals —
which generally means a property with strong
real estate fundamentals that would capture the attention of large national or international investors, such as insurance companies, private equity firms or
real estate investment trusts.
«While plentiful liquidity has contributed to these changes, the steady improvement in
real estate fundamentals —
which have spread well beyond the multifamily sector to the office, industrial and retail sectors — has contributed to increased risk - taking,» the report, called CBRE's U.S. Lender Forum, reads.
The beleaguered stock market has become a reflection of weak corporate earnings,
which has led to deterioration in
real estate's
fundamentals.
Though the rate increase will have some negative impacts on REITs — such as reduced demand for acquisitions and higher cap rates — the fact that REITs have historically performed well after rate increases can assure investors that rate hikes reflect a healthy, growing economy,
which is the core
fundamental for
real estate and REIT performance.
Healthy
real estate market
fundamentals have enabled many owners to increase rents and income,
which has contributed to an increase in property values and made refinancing easier than it otherwise would be.