Real Estate Development, Construction, Economy Thesis

Real Estate Development, Construction, Economy - Thesis ExampleThe correlation of real country, device and economy is so big that a downfall in the industry can jeopardize the whole economy for years. Japan has faced it in the mid-eighties and economies of USA, Britain and many other are facing today.The real estate and construction sectors combined had of late been a booming business all over the gentlemans gentleman and make up one of the largest business segments in the U.S. economy. Real estate development takes place in common chord major areas Residential, Commercial and industrial. In residential segment consumers are encouraged to buy houses on account of low interest rates prevailing in the food market, Sub-prime lending, lower return from other segments or stock market investment. Home owners are interested in remodeling old houses that is also part of construction industry real estateAccording to The Economist the add up asset in residential attribute in developed e conomies was worth $48 one thousand thousand and in commercial property worth $14 trillion in 2002. This was 54% of the total assets in two classes of assets, Property and financial.1.(Wikipedia)From the sources of Bank of International Settlement and wall Street journal it has been found that over three years from 2001-2004 housing values have moved up 63% in Spain, 48% in France, and nearly doubled in South Africa. In single year in 2004 prices have rises 48% in Bulgaria, 19% in Hong Kong and scaled up in chinaware, UK, Australia and India. 2. (Global Real Estate Boom)Real estate prices had unprecedented rise for so long and so fast in many countries of the world-America, Britain, Australia, France Spain, and China. Rising property prices helped to prop up the world economy afterwards the stock market bubble burst in 2000 According to estimates by The Economist, over the last five years the total value of residential property in developed economies has gone up by more than $30 t rillion. Over the past five years, to over $70 trillion. This is an increase of about coke% of the combined GDP of those countries. This dwarfs any previous house-price boom. It is larger than the global stock market bubble in the late 1990s or Americas stock market Real Estate Dev..3bubble in the late 1920s (55% of GDP). It is perhaps going to be the biggest bubble in history. There is a definite likeness between the real estate bubble of Japan in 1989 and that of 2005 in USA/UKReal Estate bubbles are created from time to time in any(prenominal) countries at certain intervals though it is non fixed and not forecast able. It occurred in 1920, 1980 and again they are threatening to raise heads in 2007-08 in USA, UK China and some more countries. This time the house prices have been rising up for long. More than 25% of homes bought in USA and UK are for investment purpose not for owner occupation showing that the investment in housing is for speculative motive. Majority of first t ime buyers did not make any down defrayment for the loan sanctioned. The home prices in most of countries have gone