Jan 19 2009
The real estate industry is typically influenced by factors such as political and economic scenario, demographics, employment opportunities and climatic conditions. With industry fortunes closely linked to the health of domestic housing and construction sectors, declines in housing starts in the US, falling property prices, weak income growth among households, and spreading global liquidity crunch, are all expected to deal a colossal blow to the global real estate market.
Bearing the brunt of the unfavorable business climate is the real estate market in the US, which received a major setback as a result of economic downturn, subprime loan performance, rigid underwriting standards, mounting job losses and escalating energy prices that strained consumer spending. New construction volumes will continue to deteriorate as financial institutions become increasingly wary of approving construction loans. Further, employment declines will reduce the demand for new office building constructions as a result of superfluous existing office space. Looking afar, household growth should rebound to the path set by the changing demographic composition, rise in immigrant households, and social trends such as marriages and divorce rates that affect the size of households.
A large percentage of growth in the global real estate market is forecast to stem from developing nations. Gains in asset values in Asia have started to wane, but have not completely halted as in the US. Propping up growth in Asia is the significant rise in economic development of Asian economies, and the continent's growing middle class population and rising incomes. Major investors from UK, the US, Singapore, Malaysia and Israel are eying the Asian real estate sector for possible investments. Apart from Asia-Pacific, the real estate sector in Middle East is also growing spurred by construction activities. Several projects are in planning stages or under way for housing developments and condominium towers. Kuwait, UAE and Oman are among the major real estate markets in the Middle East. Hotel industry in the Middle East is expected to witness robust growth over the coming few years.
Cross-border investment accounts for a major portion of total real estate investments in Europe and will be stimulated by growing property investment diversifications. Cross-border real estate investments are quite rampant across Central and Eastern European (CEE) countries particularly Poland and Russia.
The report titled "Real Estate: A Global Outlook" published by Global Industry Analysts, provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird's eye view of the industry, highlights latest housing market trends, and demand drivers, in addition to providing statistical insights into housing market starts and existing home sales. Discussion on the industry's most noteworthy regional market, the US, is amply detailed with unbiased research commentary and punctuated with 40 information rich market data tables designed to provide the reader a rudimentary understanding of the prevailing market climate. Other markets briefly synopsized to offer the reader a prelude to regional dynamics, include Canada, Japan, France, Spain, Turkey, UK, China, Hong Kong, India, Malaysia, South Korea, Thailand, Australia, Saudi Arabia, UAE, Latin America and Africa. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 597 companies worldwide.
For more details about this research report, please visit http://www.strategyr.com/Real_Estate_Industry_Market_Report.asp.