Construction & Real Estate in 2024: Optimism ahead

Potential rate reductions indicate a brighter future

Throughout 2023, challenges spurred by rising interest rates, among other factors, left construction and real estate leaders with the feeling that a dark cloud was hanging over their industry — but that cloud appears to be clearing, says Grant Thornton Construction & Real Estate National Managing Partner Greg Ross.

In this new podcast episode, Ross shares takeaways from 2023 and an outlook for what leaders in the industry can expect in the year ahead: 

• Market conditions have affected each real estate asset class differently. While the housing market and office buildings saw a downturn in transactions, multifamily and warehouses are expected to remain strong.  
• More REITs are focusing on individual asset classes, such as industrial spaces and multifamily.
• A potential for reduced rates in 2024 could increase demand, values, and transactions and investments across most asset classes.
• Other benefits of future rate reductions include opportunities for companies to improve with cost optimization projects, increase cash flow and reduce borrowing costs.

Ross shares more industry insights to help construction and real estate leaders turn the challenges of 2023 into opportunities in 2024.