The significance of the Real Estate on U.S. GDP: Ken Research

Introduction: The 2008 financial crisis was one of the worst events in the history of the United States and the globe. The crisis was offset by the actions of a handful of individuals in large financial institutions that inflated and nearly destroyed the housing market of the United States. The beginning of the crisis was the introduction of two specific tools – the Collateralized Debt Obligation (CDO) and the Credit Default Swap (CDS). The usage of these two instruments led to the crisis in the United States and then on, the rest of the world and led to collapse of major insurer AIG, lending houses Fannie may and Freddie Mac, the downfall of Merrill Lynch and more. While this issue brings to light the situation of careless management of the U.S housing market, a bigger factor brought into light is the impact of a single market in the U.S and its contribution towards building and sustaining the economy, the housing market.

Overview: In the United States, residential real estate contributes roughly 15-18% of the GDP. 3-5% is accounted for through home construction which generates an average of 2.37 jobs per project creating around USD 89,000 on average in new taxes as per government statistics from Real Estate Industry Analysis. The majority of the contribution is through utilities and rent which comprise of the housing based services creating a major contribution in the real estate sector and building the GDP. This signals a favorable situation for the United States housing market as it has a major capacity to generate new taxes and increase employment.  In 2017, real estate construction contributed USD 1.07 trillion to the nation's economic output. That's 6 percent of U.S. GDP. It's less than the 2006 peak of USD 1.195 trillion. At that time, real estate construction was a hefty 8.9 percent component of GDP. Real estate construction is labor intensive. That's why a drop in housing construction was a big contribution to the recession's high unemployment rate. While residential real estate construction and services play a major contributor towards building the economy, commercial real estate has a significant part in economic growth as well. Commercial real estate development supported 6.25 million American jobs in 2016 (a measure of both new and existing jobs).Commercial real estate development contributed USD 864 billion to U.S. GDP. Commercial real estate development generated USD 264.4 billion in salaries and wages. There were 410.1 million square feet of commercial real estate space built in 2016, with capacity to house 1.1 million new workers. Real estate is one of the key sectors in any country and is usually a major contributor towards building the economy. The changes in housing prices make a major difference in determining a person’s wealth and real estate is still a favored investment by many individual and institutional investors. The importance of this industry cannot be downplayed

Conclusion: The impact that real estate has towards building the economy is more than just that of construction. Building homes allows for employment, growth in raw material needs owing to an increased demand for construction equipment and materials as well as boost innovation into developmental technology to increase the pace, aesthetics or effective benefits that the buildings can offer. When considering housing, a majority of population believes in investing in housing based real estate and desire home ownership status with over 64% of the U.S population owning a home as of 2018, this figure is expected to increase to over 75% in the next 5 years.  The significance of this being that the impact that housing has on the economy is enough to substantially grow the economy or, if not careful, it is strong enough to crash the economy. Caution needs to be taken towards jobs and investments in real estate but it also shows that there is a major opportunity for growth and development in real estate with more effective utilities being delivered at lower prices or lowering of construction costs which could increase the rate of home development capable of providing home ownership for increasing members of the population

Key Topics Covered in the Report

Real Estate Market Research Reports

Real Estate Industry Analysis

Market Research Reports for Real Estate

Real Estate Industry Research Report

Real Estate Market Research Reports Consulting

Real Estate Business Review

Real Estate Industry Research and Market Reports

For more information on the research report, refer to below link:

https://www.kenresearch.com/manufacturing-and-construction/real-estate/SC-97-38.html

Contact:         

Ken Research

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-124-4230204

Emergence of Smart Technology in Residential and Commercial Real Estate: Ken Research

Introduction: The concept of building automation is not new. Companies selling high price real estate have included automation software for basic tasks in security and reception systems for commercial spaces since the early 2000’s. But given the rate of adoption of sensors and the level of growth of smart technology, there is an expectation that building automation will soon become one of the core components of the real estate and construction industry as automation and robots will cause a reduction in construction time, reduce the level of error in construction, reduce wastage as they will be programmed to optimize their resources available and finally will increase the value of the property 

Building Automation: With the home automation and smart home market expected to increase from USD 4.4 Billion in 2013 to USD 21 Billion in 2020, consumers are welcoming more technology into their lives. In fact, smart home technologies are now a desired feature sought out by families looking to purchase a house and for companies looking to establish a new office space. The increasing capacity of IoT devices is one of the major driving factors behind the implementation of technology based smart buildings. Real Estate Business Review estimates that about 10-40% of the devices implemented in IoT will be a part of building automation for commercial and residential purposes. Sensor deployment in the sector is likely to grow at a compound annual growth rate of 78.8 % between 2015 and 2020 to nearly 1.3 billion. Although the primary demand driver for IoT technology is the adoption of sensors for data collection and analytics, the main devices implemented will be wearable technology and smart appliances which are capable of being controlled by a single central device. Companies working with sensor technology have already begun offering wireless integration solutions for home automation including sensor systems for appliances, electronics and security systems. The growing adoption of sensor technology combined with artificial intelligence is leading to creation of robots which can work, or be programmed to work on construction at much faster speeds and with much better effectiveness than human labor and for smart home solutions which are capable of serving the occupants of the buildings for specific tasks.  The integration of machines will lead to better made, more sophisticated buildings where HVAC (Heating, Ventilation and Air Conditioning) will become a standard feature.  Improved security systems will be able to differentiate residents from strangers as well.

Market Scenario: Statistics indicate the priority levels for individuals that are the upcoming customers for the real estate sector on preference of their homes:

Safety is the highest motivating factor to purchase smart home tech. Nearly 68 % of homeowners want smart tech to become more energy efficient. Millennials desire smart tech to make their lives more convenient. Baby Boomers use smart tech to add value to their homes. Around 45 % of homeowners save money, thanks to home automation, averaging more than USD 1100 per year. The changing market paradigm is due to increased adoption of technology from the baby boomer generation indicating that even the elderly population believes in understanding the benefits offered to technology. The homeowners of the future which will belong to the millennial generation are comfortable with the integration of technology into their everyday life and the most important aspect being the automation factor which is believed to boost home value.

Competition Scenario: Some of the key manufacturers involved in the market for smart technology solutions are Siemens AG, United Technologies Corporation, General Electric Company, Schneider Electric, Honeywell International, Inc., Ingersoll-Rand PLC, Johnson Controls, Inc., ABB Ltd., Legrand S.A. Acquisitions and effective mergers are some of the strategies adopted by the key manufacturers.

Opportunity: There is a clear opportunity for the upcoming building automation sector to make a growing contribution into real estate. The commercial and residential properties of the future will have a large amount of smart technology either already integrated or will have the capacity for integration of IoT. The implementation of this technology will likely be a standard in buildings in the upcoming 5 to 15 years with more adoption of IoT only speeding the process. This presents an opportunity for developers in growing economies that have a higher amount of individuals with disposable incomes to bring in the smart homes of the future as the technology is not commercial yet it has exclusivity and hence commands a premium for its level of sophistication. The added advantage of smart homes being poised to be worth over USD 4 Billion by 2020 will result growth of the smart home market for individual homes as well as for smart residential apartments coupled with sophisticated custom made offices. The introduction of AI into the building automation sector can lower costs and increase the customer value effectively generating higher profitability for the commercial and real estate sector.

Key Factors Considered in the Report:

Real Estate Market Research Reports

Real Estate Industry Analysis

Market Research Reports for Real Estate

Real Estate Industry Research Report

Real Estate Market Research Reports Consulting

Real Estate Business Review

Real Estate Industry Research and Market Reports

To know more, click on the link below:

https://www.kenresearch.com/manufacturing-and-construction/real-estate/SC-97-38.html

Contact Us:

Ken Research 

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-9015378249

The Rebound of the Chinese Commercial Real Estate Industry: Ken Research

Introduction: Although China’s commercial real estate market was valued a USD 3.4 trillion in 2016, the second biggest in the world after the US, it hasn’t been especially active recently. The transaction activeness ratio (TAR) which is a gauge of market activity, for China’s commercial property market in 2016 stood at 0.8, compared with 7.6 for Sweden, which topped the chart of 24 countries and regions worldwide. The Netherlands was second with 5.2, followed by the US with 4.8 showcasing an almost stagnant level of activity in the real estate market for China, although the market is now poised to make a turnaround owing to the massive investment opportunity surrounding its commercial and industrial real estate. The commercial real estate market in China is forecasted to have an investment worth USD 150 Billion in the year 2020. This comes in conjunction with the rebound of the Chinese real estate market expected to grow exponentially over the next 3-5 years. Real Estate Industry Research and Market Reports estimates predict that there will be a 45% surge in en bloc transactions adding revenue of USD 41.06 Billion (RMB 260 Billion). Further there is also an expected additional influx of USD 160 Billion (RMB 1 Trillion) expected to be invested into the real estate market between 2017 and 2020. The major drivers behind this increment in investment are increased participation from commercial developers and institutional investors betting big on the growth of the Chinese real estate market. The major trends that are bound to shape the market are increasing participation of capital market activity with mergers and acquisitions playing a major factor in molding the competitive landscape of the market. Adding to this, overall cap rates on investment are expected to be stable supported by positive investor sentiment and currently, sufficient capital availability. Demand for commercial space is driven by a high level of participation from foreign participants entering the Chinese market and through a need for commercial space required by emerging domestic corporations. Leasing fundamentals are expected to stay positive following a strict level of regulation on labor supply. Although commercial demand is driven by the requirement for commercial space for companies, the extent of product demand for consumers is the key driving factor behind the growth and sustainability is the buoyancy and solid consistency behind consumer demand.

Outlook:  In 2007, Chinese commercial real estate outflow stood at less than USD 1 billion. A decade later, outbound investment in the commercial property space exceeds USD 20 billion annually. Rising capital outflows caused a rapid depreciation of the RMB, and hampered government efforts to internationalize the currency, leading to controls brought in late 2016 to curb investment outflow. Some of the measures implemented to restrict capital outflows include the prohibition of outbound investments amounting to more than USD 10 billion, the banning of overseas real estate deals worth USD 1 billion by state-owned companies, and the restriction of mergers and acquisitions outside a domestic investor’s core business valued at more than USD 1 billion. Despite the capital controls and the reported drop in overall outbound capital investment, there has been limited impact in the commercial property space in part due to Chinese investors’ desire to diversify and manage risk amid the slowing domestic economic growth. A large demand for industrial real estate is driven through the logistics industry owing to an increasing need for warehousing space in the fast emerging logistics and warehousing sector driven majorly by the explosive growth of the ecommerce sector in China. Infrastructure, urbanization, the Belt and Road initiative, the ‘Made in China 2025’ strategy, demographic shifts and the consumption upgrade are expected to shape the commercial property investment strategy.

Region Wise Breakdown: First-tier cities such as Beijing and Shanghai, with a prominent business and commercial environment, are forecast to attract 60% of the investment in commercial property, while six other key cities including the southern cities of Guangzhou and Shenzhen, the southwestern cities of Chengdu and Chongqing, northeastern Tianjin and central China’s Wuhan will account for 35%

Conclusion: The growth in the commercial sector of China combined with a consistently increasing industrial capacity is leading to China becoming one of the major markets for commercial real estate. Increased investment by institutional investors coupled with growing participation by property developers like Sun Hung Kai, Wheelock, Great Eagle, Henderson Developers and more are leading to a highly positive outlook for the commercial real estate market in China. 

Key Factors Considered in the Report:

Real Estate Market Research Reports

Real Estate Industry Analysis

Market Research Reports for Real Estate

Real Estate Industry Research Report

Real Estate Market Research Reports Consulting

Real Estate Business Review

Real Estate Industry Research and Market Reports

To know more, click on the link below:

https://www.kenresearch.com/manufacturing-and-construction/real-estate/SC-97-38.html

Contact Us:

Ken Research 

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-9015378249

Economic Evolution to Invigorate the Construction and Real Estate Market - Ken Research

Construction chemicals also known as specialty chemicals are usually defined as chemical compounds that are added in construction materials like cement and concrete at the construction sites in order to enhance the performance and workability, and protect & hold the construction material along with finished structure making it resilient. Additionally, these chemicals help in minimizing the quantities of water and cement required during the construction process. Thus, these chemicals are becoming an integral part of the construction activities in various sectors, be it residential, industrial or commercial.

 Ken Research offers detailed solution in the real estate industry with the help of its “Real Estate Market Research Reports” company offers in-depth study of the recent scenario of the Construction Industry in various geographies. It offers a comprehensive analysis to its users involving the integrity of logic and totality of contents. The reports basically portrays an outlay of the industry including specific definitions, classifications, applications and industry chain structure along with a market analysis for the international market including development history, competitive landscape analysis, and major regions' development status. Also, the development plans and policies are well discussed along with the related manufacturing processes and cost structures.

The “Real Estate Industry Analysis” is mainly split by (a) product types, with production, revenue, price, and market share and growth rate of each type, which are further divided into- Epoxy Resin, Vinyl Resin, Polyurethane (Pu), Polymethyl Methacrylate (PMMA) Resin and Other; and (b) by applications, aiming on consumption, market share and growth rate of Construction Flooring Chemicals in each application, further segmented into- Residential and Commercial.

In Construction flooring chemicals industry key players are namely: BASF, Dow Chemicals, Sinopec, Exxon Mobil, SABIC, DuPont, Ineos, LyondellBasell Industries, Mitsubishi Chemical Corporation, LG Chemicals, AkzoNobel, Mitsui Chemicals, Forbo Holdings, Toray Holdings, PPG Industries, Tremco, Huntsman, and Borealis AG.

This market has been observed to be stimulated majorly via factors like: amplifying construction activities in emerging economies like India, and multiplying adoption of the innovative construction procedures. Even, there has been a decent growth in the adoption of ready-to-mix concrete in Asia over the years and in future, when this adoption will be coupled with the surges in foreign direct investments in the real estate sector; a goodly number of opportunities are expected to be created ultimately leading to a holistic growth of this construction chemicals market.

Moreover, it has been witnessed that the infrastructure spending in Asia and Middle East  has constantly showed traces of growth and with developing environmental awareness amongst the Asians; their preferences have accordingly experienced a transition towards high-performance products and all these inter related positive changes have managed to ameliorate this industry’s revenue year after year. Not only this, even the strength of concrete used has enhanced considerably through the usage of these chemicals in the processes of construction.

In the years to proceed; backed by the rising government and foreign investments in mega projects; the demand for construction chemicals is projected to be highly intense especially in Southeast Asian countries such as the Philippines, Vietnam, Malaysia and Indonesia, which are lately noticed as relishing high investments in large-scale infrastructure as well as commercial projects.

Key Factors Considered in the Report:

Real Estate Market Research Reports

Real Estate Industry Analysis

Market Research Reports for Real Estate

Real Estate Industry Research Report

Real Estate Market Research Reports Consulting

Real Estate Business Review

Real Estate Industry Research and Market Reports

To know more, click on the link below:

https://www.kenresearch.com/manufacturing-and-construction/real-estate/SC-97-38.html

Contact Us:

Ken Research 

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-9015378249

Ongoing Optimistic Shifts in the Economy to Strengthen Real Estate Industry: Ken Research

Real estate industry is going through huge shifts with the support of the technology and advanced equipments. Out of many product segments, Concrete repair mortar is one of the products which have gained importance over a period of time as this material is used to mend and protect the concrete structures and it successfully offers fortification against chemical anchoring, cracking, and reinforcement corrosion. Thus, CRMs are generally use to repair, maintain, and restore the architectural shape of old structures and also, to restart the functional works rapidly in old and deteriorated buildings. According to Ken Research “Real Estate Industry Analysis”, the demand for CRMs never falls apart since the concrete structure of any building along with its infrastructure deters over time due to fluctuating climatic conditions and other environmental hazards.

The industry research reports published by Ken Research, company’s “Real Estate Business Review” reports provide a professional and in-depth study on the current state of the real estate industry worldwide. It provides a comprehensive analysis to its users involving the integrity of logic and totality of contents. Basically, the report entails an outlay of the industry including specific definitions, classifications, applications and industry chain structure along with a market analysis for the international market including development history, competitive landscape analysis, and major regions’ development status. Also, the development plans and policies are well discussed along with manufacturing processes and cost structures.

In Asia CRM industry is mainly split by (a) product types, with production, revenue, price, and market share and growth rate of each type, which is further segmented into- polymer cementations and epoxy-based; and (b) by applications, focusing on consumption, market share and growth rate of Concrete Repair Mortars (CRM) in each application that includes- building and car park, road and infrastructure and utility industries.

The Real Estate industry in Asia majorly caters to regions namely: China, Japan, India and Korea wherein the focus remains on the leading manufacturers after well considering factors like- production, price, revenue and market share for each manufacturer. The key players of this industry are namely: BASF, Pidilite Industries, THE EUCLID CHEMICAL COMPANY, Sika, Saint-Gobain Weber, Adhesives Technology Corporation (ATC), Flexcrete, Mapei, Remmers, and Tarmac.

It was observed that Asia-Pacific accounted for the largest market share, and since then, it has managed to maintain its position and is further expected to remain the market leader in the coming years. The huge growth rates of construction industry in countries like China, India, and Australia have resulted in an augmented demand for concrete repair mortars in both residential as well as non-residential building applications. Moreover, this growth trend is further expected to be supplemented via tremendous increase in the overall expenditure over repair and maintenance of buildings, transport and other related infrastructural amenities in countries like Japan.

Thus, the mushrooming expenses on overall infrastructure in Asia will be one of the key demand drivers for this industry and furthermore, with booming demands for alternative materials in cement manufacturing process, due to higher preferences being of repairing the existing infrastructure despite of constructing new buildings; the industry will proliferate by leaps and bounds.

Real Estate industry has witnessed major shifts in recent years and is majorly driven by the ongoing developments in end-user industries like building and car park, road and infrastructure, and utility industries. Associated with the relevant linkages between demand, investment, trade and productivity; the global growth is expected to persist ameliorating year after year with the futuristic concepts of “removing extreme poverty” and “generating decent employment opportunities for all”.

Lately, there has been a hike in the demand for polymer-modified mortar and thereby its use as a construction material in structural applications is amplifying because its exceptional durability properties have been made known to the builders. Even, the concept of green buildings is gaining momentum in this market and on investigation; it has been revealed that nearly 60% of the infrastructure projects would be green by the end of 2018 wherein the largest percentage share of such green building activities is foreseen to be in the commercial building segment.

Also, both the road and infrastructure have been noticed to be the fastest growing end-use related segments and owing to the breakthrough of high investments in the real estate sector; the global market is anticipated to evolve at a decent CAGR growth rate in next five years.

To know more, click on the link below:

https://www.kenresearch.com/manufacturing-and-construction/real-estate/SC-97-38.html

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Contact Us:

Ken Research

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-9015378249