Real estate growth rates worldwide were estimated to peak in 2021 following the end of the global lockdown implemented due to the pandemic. US growth rates peaked at 5.5% in 2021 but decreased to 4.6% in 2022. The UK and Europe have the same growth rate as the US in 2022, but their peak in 2021 was 6.9% and 5.2%, respectively. On the other hand, China had a massive peak of 7.8% growth rate in 2021, which fell to 5.5% in 2022. Japan saw a rise in growth in 2022 of 2.9% compared to the initial 1.9% in 2021. Overall, US and UK have maintained uniform growth, while China’s growth is above average. Thus, these countries are profitable in terms of real estate business.
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Issues Pertaining to Real Estate Business
Establishing a real estate business is a challenging task. Some factors that may inhibit the smooth setting up of business involve currency problems, political disturbances, GDP fluctuations, taxation, and infrastructure issues. Here’s a look at the main problems pertaining to real estate in countries:
- Political issues like Immigration Laws that prohibit non-citizens from setting up a real estate business
- Currency inconstancy, a shift in interest rates, fall in currency values
- High taxation is imposed on the real estate sector with no evidence of the correct interest rates provided by the local government.
- Gradual reduction of worldwide GDP by 2023 and economic slowdown.
- Geopolitical risks involving climate change.
- Other real estate businesses give fierce opposition to establishing newer businesses with steady clients and years of experience.
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How does the US get Preference in Real Estate Market?
The US has been favorable in real estate due to its legality of foreigners owning land, its stable growth rates over the years, its idealization of American identity, and the various real estate associations, which give rights to businesses like the Association of Foreign Investors in Real Estate (AFIRE). Naturally, these conditions provide a $2 trillion possible turnover in real estate in the US. American markets are more accepting of foreign investors compared to those in Asia, the larger part of Europe, and Australia. The vastness of the country and unused spaces also contribute to the demand for real estate business, with people migrating to the US searching for places to settle down, especially in the emptier suburbs. If you have different ideas on real estate and want a service to check plagiarism before publishing your work, then the option of write my essay plagiarism free will check your work for you and make publication stress-free.
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Country Preference for Real Estate
The profitability of real estate is based on ROI or Return On Investment, which clears up the concept of earnings that can be made through the business. A country’s GDP is a factor that determines the possibility of investment. Germany’s growth of 8.1% in 2021 in the real estate sector makes it a rising competitor in the field. The UK has seen a stable rate of 4.4%-4.6% return on real estate and maintains this figure for 2022. Other European countries like the Netherlands and Luxembourg have a 4.6% and 5.2% real estate return, on par with the UK. Australia and New Zealand also had around 5% and 5.8% rates in 2021. Asia is now a massive contender in real estate, with countries like Turkey and China seeing a steady rise in real estate, with China having a 15% GDP worldwide. Yet, preference is always gained by a single country in the real estate sector, the US. You can find ways to invest in foreign markets based on their ROI and GDPs.
Overview of the Real Estate Sector
The GDP fluctuating through the years has led to a considerable shift in the sector, but it is regaining its stability gradually and is estimated to o strong over the next few years.
Conclusion
Jodi Williams is an economic specialist and data analyst. She has worked in the commerce sector and gained experience in the market, which is reflected in her archives, journals, and essays. She provides crisp and detailed information to the readers and makes it her ideal to be honest in her work.