Top 10 Business Risks for Real Estate 2009

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The 2009 Ernst & Young real estate business risk report, produced in conjunction with strategy consultancy Oxford Analytica, itemizes the top business risks faced by the industry as ranked by leading sector analysts. The top 10 risks in 2009 are:

1. Continued uncertainty and impact of the credit crunch.

2. Effects of globalization.

3. Impact of aging and inadequate infrastructure.

4. A global war for talent.

5. Changing demographics.

6. Big profits are hard to find.

7. Pricing uncertainty.

8. Green revolution, sustainability and climate change.

9. Economic vulnerability and regulatory risks in developing markets.

10. Increasing energy costs.

The real estate sector has felt the tightening conditions in credit markets perhaps more than any other sector due to its heavy reliance on capital. Financial conditions for real estate projects are undoubtedly worsening and the current financial markets landscape is expected to persist for the next couple of years.

The ranking is included in the report available from the Ernst & Young website.

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