Charlotte and Raleigh earn high scores in ULI emerging markets report

0
369

The Queen City and Raleigh earned high scores in the Urban Land Institute’s latest Emerging Trends in Real Estate Forecast report. Charlotte came in at No. 17 in a ranking of 51 U.S.markets to watch for overall real estate prospects, garnering high scores for significantly improved interest in investment, development and home-building prospects.

“Mostly understood as a big banking and financing town, (the Charlotte market) has continued to expand, with a variety of businesses relocating to Charlotte for its high quality of life, low cost of business, and world-class international airport,” the report states. But despite projections for continued job growth and migration, the metro area is still seen as risky due to its dependence on the banks.

Raleigh, ranked at No. 11, was the only other North Carolina city listed in the report.  Raleigh’s development prospect ranking moved up five spots to tenth, and homebuilding jumped four spots to 11th overall. Supply constraints for commercial real estate play a factor in the development  bump. The metro area’s investment prospect value rose, but its ranking stayed at 15th. This eastern-seaboard, centrally located area continues to be a hub of education: the city ranks fifth overall in that field. “It is one of our top markets to watch next year,” states an investor. A very affordable cost of living, substantial job growth, and a diverse employment base have continued to stimulate the economy.

For 2013, Raleigh tops the survey’s forecast for highest ratio of net migration to total population and is one of the top five in GMP per capita. The importance of the housing market as a backbone for commercial real estate is visible as home prices are expected to increase another 1 percent next year, and Raleigh/Durham is one of the few metro areas out of the red since the recession. This situation, combined with a foreclosure rate just shy of 4 percent, puts the area in a good position for future growth.  Read More.

LEAVE A REPLY