Artificial intelligence (AI), capital markets and rising construction costs are expected to be among the most significant issues affecting real estate in 2027, according to The Counselors of Real Estate’s annual “Top Ten Issues Affecting Real Estate” report.
AI ranked as the No. 1 issue, with the report citing both growing data center demand and the expanding use of AI in real estate analysis, underwriting and workflows. Capital markets ranked second, as higher-for-longer borrowing costs continue to pressure yields and force investors to focus more heavily on property-level income and operations. Construction costs ranked third amid continued pressure from labor shortages, energy volatility, supply-chain disruptions and higher interest rates.
Other issues on the list include geopolitical risk, migration trends, housing attainability, distressed assets and refinancing risk,
