According to the 2009 Emerging Trends in Real Estate report, released by the Urban Land Institute and PricewaterhouseCoopers, apartments are a best bet for investments in the coming year.

With 2009 expected to be the bottom of the real estate slump and no considerable movement in 2010, opportunities are presenting themselves in the apartment industry for investors. The report is a compilation of input from over 600 real estate professionals who recognize the growing interest in renting. Less people are worried about losing out on growing equity with the fall of home prices causing a surge in the amount of people entering the rental market.

Among the most promising multifamily/apartment markets are Seattle, San Francisco, Washington D.C., New York City and Los Angeles, with Seattle and San Francisco taking the two top spots.

The Emerging Trends in Real Estate report gives these tips for 2009:

1.  
   • Investors should sit tight; opportunities will surface at significant discounts.
   • Invest in maturity defaults, construction loans/bridge loans, or take mezzanine positions and equity stakes in properties.
   • Invest in REITS as they will lead the market’s recovery.
   • Focus on global pathway markets, including 24-hour coastal cities.
   • Staff up asset managers, leasing pros, and workout specialists; separate good assets from the bad.
   • Retrench on development, and reorient to mixed-use and infill.
   • Go green; cutting energy expenses is likely to be a priority.
   • Buy or hold multifamily; hold office; hold hotels; buy residential building lots, but be prepared to hold.
   • Purchase distressed condos in urban areas near transit.
   • Focus on neighborhood retail centers with strong grocery anchors and chain drugstores.

To learn more see the full article in the Multifamily Executive.