Real Estate Development, Construction, Economy Thesis

echt realm Development, Construction, Economy - Thesis ExampleThe correlation of real res publica, construction and economy is so king-sized that a downfall in the industry can jeopardize the whole economy for years. Japan has approach it in the eighties and economies of USA, Britain and numerous other are facing today.The real dry land and construction sectors feature had of late been a booming business all over the world and make up mavin of the largest business segments in the U.S. economy. Real estate development takes place in three major areas Residential, moneymaking(prenominal) and industrial. In residential segment consumers are encouraged to buy houses on account of low have-to doe with rates prevailing in the market, Sub-prime lending, lower return from other segments or stock market enthronisation. lieu owners are interested in remodeling old houses that is also part of construction industry real estateAccording to The Economist the integral asset in residen tial property in developed economies was worth $48 trillion 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 make up that over three years from 2001-2004 housing surveys 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 China, UK, Australia and India. 2. (Global Real Estate Boom)Real estate prices had unprecedented rise for so long and so fast in m all countries of the world-America, Britain, Australia, France Spain, and China. Rising property prices helped to prop up the world economy after the stock market erupt 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 trillion. everywhere the past five years, to over $70 trillion. This is an increase of about 100% 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 pass to be the biggest bubble in history. There is a definite comparison between the real estate bubble of Japan in 1989 and that of 2005 in USA/UKReal Estate bubbles are created from clip to duration in some countries at certain intervals though it is not 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. legal age of first time buyers did not make any down payment for the loan sanctioned. The home prices in most of countries have gone