Real Estate is an evergreen industry which will grow as long as there is a need for industrialization and development of an area. There will always be the need for accommodation for the people getting employed in an industry or travelers and tourists visiting any place around the world. So real estate is a business which will never face any loss until unless a natural disaster strikes the buildings. Here are a few ways the real estate and economy of a nation are related.
A place for potential industrialization
The economy of a nation is very well dependent on real estates because it provides space for businesses to operate. It also provides the infrastructure required by an industry to function smoothly. The better the quality of the buildings and services of a place, the better reputation, and the attraction it receives. Business parks and IT parks are the most advanced industrial real estate operations that occur today. Companies choose the locations based on the facilities and space provided to them. A good real estate business which invites more industries will automatically help the economic growth by contributing to the GDP of the nation.
Source of employment
Real estate business provides employment in all sectors of the economy. The architects, builders, and engineers are hired to create masterpieces for industries and housing. Apart from these departments, it also employs the advisors, surveyors, facilities managers, which contributes to the construction of the buildings. Also, after the buildings are complete, space is provided to the new industries which will create employment to more people in the area.
Real Estates are the foundation of Industries
We should realize that Real Estates is the industry behind the establishment of major industries such as schools, hospitals and other institutions. All these industries work towards contributing the development of the economy and require the real estates for their establishment. The real estate works indirectly towards the economy of a nation. Hence, it is the foundation of all the other industries as no industry today can willingly work under a tree.
Growth in Tourism
Due to the infrastructural improvements in a country, the value for the places also increase. As the developed regions become attractive, it gains the attention of the people worldwide for tourism. The tourism industry benefits in a major way with good infrastructural growth. There is a need for a faster rate of development in the underdeveloped regions, and tourism is the fastest growing industry in the world and the regions with the best infrastructures are more likely to advance in economic growth compared to the underdeveloped regions.
Although real estates are not one of the major contributors to the economy, it surely is the backbone to support all the other industries working towards the development of a nation.