The real estate is set to change much of the world’s landscape over the next few years. It is estimated by 2020, the extent of the real estates’ impact will be much visible. One remarkable aspect in the context of the real estate is the way people are buying properties around some of the biggest cities in the world. The urbanization on a fast rate along with upscale living conditions has become the norm for real estate across the globe.
The High Purchasing Power:
Behind the popularity of the real estate, the changing economic scenario also has a part to play. People these days have higher purchasing power compared to previous. The real estate managers, leading investors are all making the maximum out of this opportunity. Real estate growth is triggering the growth of work opportunities too. Such as, a career option to become an electrician has a lot of scope and money when viewed in the backdrop of the emerging market of real estate.
An Area to Work For:
The real estate industry is always looking for the very best of certified and qualified manpower regarding the build-up to expensive projects. Proper education and training fields are too thus experiencing a growth. Skilled individuals are starting off their own Independent small businesses that are getting assigned by real estate businesses with ample work. The industry of real estate is itself very labour intensive thus the unemployment rate can increase if the real estate or construction industry takes a hit for some reasons. In the worldwide impact of the recession a few years back, construction industry did happen to struggle. The contribution of real estate in the development of an economy is measured by the GDP or gross domestic product. The real estate industry is in its entirety a chain of key economic segments which also suffers if the real estate fails.
As for instance, if there happens to be any decline in the real estate sales, the real estate prices are also to fall. This eventually lowers the valuation prices of most buildings, irrespective of whether the building is on sale. Taking the instance of a country like the US, a capitalist economy is solely dependent on the buying power of people. The more the purchasing power of real estate for the people, the better it is for an economy.
While the real estate industry can be suitably divided into residential and commercial, in the context of a country’s economy it has a huge role to play. Real estate as an investment for people’s families is the source of wealth and savings. Individuals can invest in real estate that are bought and sold in the stock market. It is considered one of the safest ways of property ownership as the management of the property is done by experts. The commercial real estate, on the other hand, comprising of apartment buildings creates the space for office jobs, retail stores, and even manufacturing units. Hotels too are a part of the commercial wing of the real estate. The definition of hotels is a bit expansive with resorts, luxury resorts, business stay-ins, motels and others.