This boom or bubble is not only the matter of highly developed countries, rather these surging property prices could easily be noticed even in developing individual countries of the world.
This paper provides an insightful study in the growth of real estate market at an international level as well as for individual countries. This paper is an investigation into the booming of real estate market in many countries of the world relating the heightening prices to the most important factor i.e., demand, and then moving beyond to other factors contributing to the growth of this trend or bubble at such a level. The major causes behind the property market bonanza observed in several countries could also be related to some macroeconomic indicators in a particular country. However, the apprehensions concerning the existence of a 'market bubble' should also not be ignored. Hence, this discussion is also included in the spectrum of our study of real estate market boom.
Real estate market comprises a bunch of residential and non-residential sectors of the economy including housing and commercial construction sector (i.e., offices, houses, apartments, retail buildings, and also dams, bridges, roads etc), brokerage sector and real estate financing, investment and management sector etc. Thus there is an interlinked array of economic activities involved in real estate market. Real exchange property, in particular residential property is the pre-eminent asset category around the globe. It is the asset on which almost every household expends a substantial portion of income regardless of nation, caste and creed. Therefore, housing is the greatest sector contributing to the economic condition in the world. According to the US Department of Commerce (Bureau Of Economic Analysis), In the United States, the aggregate market value of housing is near $12 trillion, much larger than the US stock market capitalization and even the Gross Domestic Product.
The growth in real estate market is one of the major generators of global economic upturn. Most eminent in this context is the residential sector of the economy Surging house prices, along with low interest rates, have promoted mortgage-financing activities, bucked up consumer spending and bolstered macroeconomic functioning. Conversely, real estate commercial property rates in most countries have remained well below their pinnacle levels achieved during the period of 1980s and 1990s.
Besides the importance of residential real estate, another component in the real estate market is also worth consideration. The market in commercial real estate grows or tumbles in a direct relation with the derived demand i.e., entirely depends upon the current and predictable future state of service and industrial sectors in the economy. As the economic state of these sectors meliorates, the commercial real estate market grows rapidly and vice versa. Conversely, the growth residential or housing real estate marke