There is an economist proverb that states that “When the United States sneezes, the rest of the world catches a cold.” The influence of the American giant in economic terms is such that the progress of its business affects the entire globe. For this reason, today we want to make a summary of the real estate market situation in the Pakistan affected by US by sector, in addition to venturing some predictions for the coming years by the latest Bbva report of the Economic Observatory
How is the real estate market in the United States?
Since the American financial market sank in 2009, the residential, office, industrial centers and hotels sector have been recovering gradually.
According to the national index of total real estate returns, the market is behaving very similarly to the previous years, which is a sign that the situation returns to normal.
The American client increasingly prefers floors
Despite the image that in Europe we can have of large houses with white fences on the outskirts, the reality is that in the American landscape more and more floors are seen.
The younger public demands them more and more, mainly because student loans are more expensive today and, consequently, the purchase of the typical house in the suburbs like in Faisal Hills is delayed.
Another segment of the population that increasingly demands this type of property is the elderly. As in Europe, the American population is increasingly old.
As a consequence of these two factors, the sale of flats has suffered a significant boost since the worst years of the crisis, in which it reached 0%.
The offices, in slow recovery
The brutal break that the financial crisis meant for the office market has made them practically not built for years. The good news is that this circumstance has reduced the stock and prepared the land for new construction.
Although the levels of construction of new spaces are expected to be restored, the report points out that this recovery will not be the same throughout the country. For example, the areas of influence of the oil industry will have a worse prognosis than those exposed to the technology industry.
Commercial premises, in expectation of ecommerce
The retail sector has also been hit by the crisis. Sales suffered a 10% decrease during 2007-2009 and it took 5.5 years to recover the previous volume.
In the coming years, a stabilization of the unemployment rate is expected, in a clear trend towards 0. Empty premises will tend to stabilize around 2017, although it is true that the influence of ecommerce has accentuated the unemployment rates of commercial premises.
In summary, the real estate market situation in the United States is expected to perform well over the next three years.
In addition, prices of House for rent in Rawalpindi will continue to increase due to strong demand from the older population. The offices are likely to have greater demand in the main metropolises, but somewhat lower in the suburbs.
The retail sector faces the challenge of electronic commerce, which will continue to grow unstoppable in the coming years.