Where is the Global Real Estate Industry Headed?

1. Where is the Global Real Estate Industry Headed? copyright @ 2018 RL TechnoRitz

2. The Real estate sector has come a long way since the 1990’s by becoming one of the fastest growing industries in the world. It is not just the domestic investment, but foreign investments in the real estate are pouring in as well. The growth of this industry is mainly attributed to the rising population and immigration, leading to urbanization. Despite the positive outlook for the sector, some new problems have cropped up in the industry. These problems restrain the sector from yielding the full benefit of growth. Moreover, it is also facing situational extremities such as increasing need for housing but diminishing project launches in semi-urban and rural areas. copyright @ 2018 RL TechnoRitz

3. We list top trends that are driving some significant changes in the real-estate sector. copyright @ 2018 RL TechnoRitz

4. 1. Job loss in other sectors affecting the real estate business The increase in jobs result in a good real estate business. Similarly, recession or a decline in the quality of employment results in a decrease in the real estate business. It is evident that people who are interested in real estate are mostly in the management or mid-management and this group is most prone to job loss technically. People working below the mid-management level are typically not qualified to be interested in real estate. Hence, the real estate business directly depends on the quality and stability of jobs in the market. copyright @ 2018 RL TechnoRitz

5. 2. Lesser rental yield from the real estate Rental yield is the determining factor of the purchase and value of a property. A high yield is essential for property investment. Rental yields in different countries vary owing to several key factors. Buyers are skeptical of looking for property. Another reason could be that land value in the US is overpriced in certain areas, making it a dull investment option, thus, lowering the rental yield. copyright @ 2018 RL TechnoRitz

6. 3. High-interest rate and unclear tax rates It is a vital challenge in the real estate sector. In comparison to other industries, the real estate sector has high-interest rates. The higher the interest rates, the lesser demand for the housing loans. Similarly, the levied taxes are unclear and non-understandable for the layman. All these factors contribute to the complex and demanding buying situations which deter buyers from any real estate investment. copyright @ 2018 RL TechnoRitz

7. 4. Issues getting bank loans and delay in possession Home loan seekers face difficulties in getting a bank loan from financial and non-financial institutions, and the reasons for rejecting these loans could be as simple as the lack of knowledge in the proper filling of forms and documentation. Adding to the buyer's dilemma are choosing the interest rate, the time for loan repayment, property evaluation, and the lengthy loan disbursement process. copyright @ 2018 RL TechnoRitz

8. 4. Millennials buying and taking home loans Not that we are against it, but millennials without any experience or proper stability applying for loans and buying houses, fall in pits later which are unrecoverable. They get into many debts, affecting loan repayment and house affordability. Conversely, in cases where the millennials are financially stable enough to take a loan, the property is overpriced, making it tough for the common man to shoulder the heavy financial burden. copyright @ 2018 RL TechnoRitz

9. Conclusion As a result of the factors mentioned above, the real estate industry has some pertinent questions to ponder upon and come up with the right win-win solutions for everyone. Learn more about the solutions for the challenges faced by the Global Real Estate Industry. copyright @ 2018 RL TechnoRitz