Over the years, real estate has grown to be one of the largest sectors in the world. For most people, this has brought about a huge impact on their lives and businesses. However, many argue that without its impact on the economy, life would not be so easy or enjoyable.
This article outlines how real estate affects various aspects of society and what its impact really is on our economy.
Impact on World economy
In recent times, it has been argued that a lot of the world’s economy is affected by property prices and sales. In the UK alone, there was an estimated £145 billion worth in real estate transactions which took place in a given year (Gartner). An even larger percentage of this value comes from commercial property. While this is true, it has to be noted that most of this value comes from transactions such as offices, factories and shops. This is because these are the tangible things we can see and touch, which gives us a more concrete way of seeing how property affects our economy. This was not the case before the 21st century.
In the past, this was not the case at all. The value of land and real estate was extremely low compared to its value today. This is mainly due to a number of factors such as archaeology, the end of feudalism, industrialization and other such aspects that affected real estate’s value. One of these was archaeology. In the 19th century itself, urban ‘developers’ often destroyed tombs and other such archaeological sites in the name of ‘progress’. This in turn led to cities like London losing a huge amount of historic value.
This was a huge blow to the real estate industry and its future growth. Hospitals, factories and schools were built on these sites which affected the lives of thousands. The end of feudalism had a similar impact on our economy as it led to an independence boom and ultimately, an influx in housing development (Berube).
If you’re looking for the secrets of success in real estate, the first thing to note is that it’s a people business. Entrepreneurs like Rohit from India or other Real Estate Entrepreneurs know how to build a strong network, think long term while balancing short-term needs, and scale from residential to commercial.
6 tips for a top real estate entrepreneur:
If you follow these tips then you can also come among the list of most successful real estate entrepreneurs.
- Find your best investment type so that you can learn about its market dynamics and potential cash flow.
- Look for a location that is a good industrial and then residential area
- Find the most accessible place for your investment, so that you can have access to it easily.
- Learn about the neighbourhood so you can differentiate between their needs and budget, and get to know their history
- Know business etiquette such as how to create mutual respect with your vendors and lenders.
- Commercial real estate is a lot different than residential; you need to be aware of the differences.