Globally, the housing market is hugely significant because firstly it typically represents a person or family’s biggest single purchase - a house reflects the largest single item of consumer wealth - and secondly fluctuating house prices can have substantial implications on a country’s economy.
A well-functioning housing industry is crucial to the general well-being of a country’s economy and the construction industry is one of the most profitable industries in the world. By 2030 global construction will grow by 85% to $15.5 trillion and countries dominating the market include: China, India and USA accounting for 57% of all global growth. In the USA, the expansion of construction will mainly be in southern states this is because of a higher population growth.
The construction industries in the Middle East and Africa region are predicted to be rapidly growing for the next 10 years, also the construction industries in emerging markets are forecast to continue to grow at a much faster rate than the advanced economies. The construction market in India will grow twice as fast as China by 2030 and emerging economies in general are expecting large population increases in the coming decade creating demand for construction activity and good housing.
The UK is a stand-out growth market, overtaking Germany to become the largest in Europe and the world's sixth largest construction market by 2030.
The industry has immense potential to create employment and research indicates that the construction industry offers employment to around 7% of the total employed workforce around the globe. The global construction industry currently represents about 13% of global GDP and this number will increase to 15% in 2020.
In many countries housing makes up the largest component of wealth and the bulk of households around the globe are inclined to demonstrate wealth in the form of their homes rather than in financial assets, for instance, in France, less than 25% of people own stocks but nearly 60% are homeowners.
Housing is an essential sector of a country’s economy and construction is likely to be one of the most dynamic industrial sectors in the next fifteen years.
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