The real estate industry experienced a boom in the last quarter of 2013 and this is expected to continue through 2014. The development in real estate industries is brought on by multifaceted progress from different aspects of the nations. The macro-scale progress in the economy compounds with micro-level changes in household purchasing power to bring forth a welcome advancement in real estate industries. This advancement is hoped to translate into a larger development – one that manifests in the entire economy of a country.
Today’s prices for property experience a more stabilized trend and are therefore more predictable than ever. This stability allows for a surer sense of security, which is more than any real estate player can ask for when placing money in the real estate industry. As such, investments are flowing in to and from different countries, generating income and worldwide growth.
Real estate trends in Asia encourage a growing number of property purchases. The Makaan.com Property Index (MPI) reported a stable trend when it comes to India’s real estate industry. In fact, MPI has indicated a decrease in property prices and is encouraging aspiring homeowners to seize the opportunity and begin purchasing their dream homes.
The region’s economic growth reaches further as other Asian countries experience a similar progress. Real estate businesses in the Philippines have been riding the trends of the condominium industry. Business tycoons such as Donald Trump and Paris Hilton have joined the growing trend that is caused by stable prices and low interest rates.
Global capital is also flowing into European countries and its global cities are the recipient of large infrastructural investments. The gradual decline in political uncertainty is seen as a key factor in this growth in the real estate industry. In America, experts say that 2014 will be a good year for people selling properties, as the US real estate industry is still a sellers’ market. However, for those wanting to buy homes, 2014 will still be a better year than 2013. The prioritization of the availability of mortgage credits by new Federal Housing Finance Agency Head, Mel Watt is viewed by most economists as a huge step in the right direction in wielding America’s real estate industry. From the 2007 depression experienced by US up until their current recovery, economists have yet to see a stable contribution coming from the real estate industry, but they are hopeful that beginning the last quarter of 2013, things will start to take a turn for the better in relation to the housing industry.
The real estate industry is a huge income-generating industry. It not only brings money into the country, but it also allows for that flow of money to circulate within its population to benefit a handful of people. This important attribute of the real estate industry makes it a huge contingent in determining the rise and fall of the country’s economy.
To start with, the real estate industry thrives in investments. It needs seed money to begin. Without people willing to invest, a real estate industry may find it hard to root itself in the country. Once real estate players begin to invest though, money immediately flows in. When investments are made, projects kick in and infrastructures are made and sold or rented. In all these, jobs are generated. Builders, engineers, salesmen, and other pertinent professions are made necessary by the industry. With this alone, economic growth is partly ensured.
The income-generating property of the real estate industry does not end with providing jobs. In fact, this is merely an externality of the entire industry. For every property purchased or rented, both the country and the investors benefit. Profit is obtained and additional purchases are made to contribute to the country’s entire gross. All these factors stature into the country’s GDP, which tracks all the services and products produced by the country.
The large contribution of the real estate industry is visible in most countries’ GDP such as that of the Philippines. The country’s GDP growth is largely blamed on its robust real estate industry, which formed a bulk of its service sector. A country’s GDP, the widely accepted indicator of economic condition of a country, enumerates the industries largely responsible for the numbers it poses. A breakdown is usually provided to indicate which industry provided which portion in the entire GDP.
The trends experienced by the real estate industry is very indicative of the country’s current economic condition. For example, a rise in property purchase throughout the country indicates a greater purchasing power for the population. If a large number of the country’s population is able to purchase property, then that speaks well of the country’s ability to provide and distribute among its people the means to do so. Measuring the number of properties purchased will give a figure that can contribute to the computation of the general purchasing power experienced by the population. This purchasing power can then be utilized to understand the country’s economic condition.
The number of people selling properties, houses, or condominiums also indicates the ability of the economy to attract serious investors and have global investments pour into the country.The real estate industry employs a huge deal of risk for the investor as properties may or may not sell. Experts have been scuttling for the possible causes of real estate demands. A strong economy, however, provides security and sometimes, low interests. These are only two in a number of factors investors consider when deciding where to invest. A country that flourishes with international investments can be easily identified as a country with less risks and more security and stability. The possibility of less risks and more security and stability can only be assured through a strong and resilient economy. It is therefore easy to identify the country’s economic situation through an evaluation of the number of international figures willing to invest in it.
If economists are to be believed, 2014 will be a good year for the real estate industry. A number of countries have shown good figures when it comes to economic security and price stability. Risks, however, may prove to be impossible to completely eliminate. However, what certain countries can assure their potential investors with is that real estate may experience more boom in the years to pass.