The global commercial real estate industry refers to the industry that sells, buys, rents as well as operates leased or owned real estate properties including the income-generating residential properties like apartment buildings and also commercial properties like hotels, retail malls, casinos and restaurants. This particular industry also includes several real estate services like property management, brokerage, valuation and consulting services.
Industry trends and analysis
The global commercial real estate industry has already recovered from the difficult times during the recessionary environment which was fueled by a global credit crunch. During the time, there was a notable contraction in real estate transactions, lending, and property values as well as in construction activities. In Asia, the booming commercial real estate activities offset the declines that were pertinent in other regions. Other factors that helped revive the tumbling down industry were the lowered unemployment rate and the higher disposable income in economies that were mature. They helped revived the real estate prices and the construction industry. In the next five years, analysts and economists are predicting that the revenue in the industry is set to increase. The driving factors of this trend would be the retail and business operations. The revenue for these avenues will significantly increase. Additionally, the global real estate market will also shift toward the burgeoning countries and that consistent growth will be felt.
Industry SWOT Analysis
During the years marking to 2020, the real estate industry value added is predicted to significantly increase at an annual rate of about 4.6 percent. This is faster than the yearly expected world GDP growth which stands only at 3.4 percent during the same period. The value addition is a measure of the contribution of the industry to the economy of the world. Those engaged in property related businesses like HomeUnion real estate investing will surely be at an advantage with this expected trend. The steady expansion is deemed to be typical of an industry which is growing. However, it is to be noted that the industry activities also fluctuate on a cyclical basis. The annual movements are likewise dependent on the business activities, global economic growth and the market conditions of every country.