Monday, April 30, 2012

Interesting Real Estate Stats

Here are some sobering statistics from the indispensable economics blog Calculated Risk
Office investment as a percent of GDP peaked at 0.46% in Q1 2008 and then declined sharply.  Investment as a percent of GDP fell to a new low in Q1 and is now down 64% from the peak.

Investment in multimerchandise shopping structures (malls) peaked in 2007 and is down about 68% from the peak and at a new low in Q1 (note that investment includes remodels, so this will not fall to zero).

Lodging investment peaked at 0.32% of GDP in Q2 2008 and has fallen by about 82%.

Notice that investment for all three categories typically falls for a year or two after the end of a recession, and then usually recovers very slowly (flat as a percent of GDP for 2 or 3 years). This is happening again, and there will not be a recovery in these categories until the vacancy rates fall significantly.
Click on the link above to see graphs that correspond with the above statistics.


3 comments:

J. Watson said...

Property investment requires lump amount and so you need to save for years before investing. Otherwise, you need to go for instant loans. Financial institutions provide various kinds of loans including bridging loans, collateral loans etc.

Anonymous said...

People just don't have the funds and four years later, are things really better than 08-09??

Montgomery Patrick said...

You must consider your earning prior to confirming to obtain any loans for single mothers. Judge the amount of your earnings. Next you should consider if it is enough. Bear in mind, when you request for a bank loan , you have to reserve money to compensate for the chief amount you lent along with its interest rate. Have you got spare? You must find another method to make additional income if you do not have it.