4 b. Demographics. High total returns averaging at 25.0% against 12.4% in the traditional asset classes. 10 c. Identify why demographics are important to you as a real estate agent - how does demographics affect real estate in your area? Austin is evolving as a city and as an urban area. Taken together, these factors affect supply and demand and dictate real estate economics. However, the number of overall child deaths caused by HIV/AIDS is small relative to the global Demographics provide information on the age, … Meanwhile, the advanced economies’ ageing populations will demand specialist types of real estate, while their requirements for family homes 2. A new set of Bills expected to be passed by Parliament this year will fundamentally impact South Africa’s R6 trillion property industry, seeking to give the public greater avenues for recourse, set stricter guidelines for estate agents and provide for improved transparency. 2 1.3 Economic Environment a. Real Estate investment is a very significant fraction of people’s wealth. Transvaal, Town-planning and Townships Ordinance, 1986. tion can have a considerable effect on the price and demand of property. Download report. The current prime lending rate … “There are various factors at play, the most important being market conditions which affect so many elements including the cost of loans. In Africa, this is greatly affecting the real estate market. Understand the underlying economics of … In the real estate industry, Nigeria is experiencing rapid urbanization, with an estimated annual national population growth rate of just over 2% and an annual urban population growth rate of about 4%.The population is becoming more and more focused to the urban areas, towns and cities with just under 50% of the population living in urban areas — and this number will continue to grow. While these trends may already be evident, there is a natural tendency to underestimate how much the real estate world In terms of demographics, SA has a young population, with about two thirds of its citizens under the age of 35 years (the typical age of a first-time buyer is currently 34 years, according to ooba). We will be looking at the top 10 issues affecting the Nigeria real estate industry in no particular order. Introduction South Africa is a unique country at the southern tip of Africa, with its incredible diversity. South Africa is rich in mineral resources. PEST examines… Political: These influences are related to politics, politicians, and the government.In real estate, laws, taxes, and inflation rates can affect the prices of houses. Economic Conditions. Demographics tend to be concrete variables that are concise and sometimes quantitative. Population, mln. In the lexicon of post-apartheid South Africa, however, this notion of labour-intensive manufacturing as a driver of growth and jobs in the country is strikingly absent South Africa is classified as an upper-middle income country, with real GDP per capita currently at USD5,916, up from USD4,652 in 2000. Real Estate Customer Demographics. To read more, download our entire eBook, “The Real Estate Investor’s Checklist.” When it comes to real estate investment, there are many factors smart investors should assess before making decisions. It boasts a relatively high GDP per capita compared with other countries in Sub-Saharan Africa, but it also has extremes of wealth and poverty. Marketing plans list customer demographics in order to segment consumer groups. While these trends may already be evident, there is a natural tendency to underestimate how much the real estate world Demographic trends such as rapid urbanization at 4.4% p.a against the world’s 2.5% and population growth averaging at 2.6% p.a; and. decent environment without compromising other needs has been found to have a lot of economic benefits which accrue to the citizens, business community and the government. Our panel discusses Savills 2020 Impacts programme, covering whether Covid-19 is a new 'tipping point' for property around the world and how economic, environmental and technological upheaval is changing the world of real estate. There have been profound behavioral shifts in consumer spending recently. Below are the top 10 issues affecting the real-estate market in the next 10 to 30 years. DEPEST refers to the six broad factors affecting the macroeconomy – Demographic, Ecological, Political, Economic, Socio-cultural, and Technological. The economy grew by a minuscule 0.2% during 2019, its weakest performance since 2009. But despite these encouraging figures and trends, the Nigeria real estate industry is still burdened by several issues that are hindering its growth. - South Africa. The Experts weigh in on the challenges—as well as the opportunities—for companies as the U.S. population shifts, from new investment opportunities to increased needs for education. If the capital is not available to invest, then real estate purchases will decline. PRETORIA, August 17, 2015 — Taking advantage of its growing working-age population could help accelerate South Africa’s growth to 5.4 percent a year and double per capita incomes by 2030, according to the South Africa Economic Update released by the World Bank today. Currently South Africa produces 5% of its fuel needs from gas, 35% from coal and 50% from local crude oil refineries. Physical factors can determine whether a location is feasible for development at all based on the soil conditions and topography. Fraser (2006) states that in many countries the real estate market has been deemed to be essential as an important asset class for any type of investor. They can also drive the market demand for specific types of For example, a location next to a protected harbor would be expected to develop industries related to shipping. The housing market crash in the mid-2000s drastically hurt real estate. Act 108 of 1996. intensive manufacturing industry. Bookmark. South Africa’s Changing Demographic Could Lift Growth to 5.4% by 2030. This is true across the globe, and as such the sub-Saharan Africa consumer is no different. View expert Nicole Larson. South Africa, Local Government : Municipal Systems Act, 2000. They are 7 percent more likely to work than their predecessors, which means 25 percent will be working full-time. Aspects such as noisy freeways, railway lines or airports or anything else that could be seen by a buyer as a potential annoyance or eyesore will negatively affect … The overall health of the economy, not surprisingly, plays a major role in the value of … 30 March 2001. How will changing demographics affect the real estate market? Demographic, developmental, housing stock and other key characteristics for South Africa 2.1 General overview: South African provinces The Republic of South Africa covers an area of 1.2 million km2 - nearly twice the size of the state of Texas in the United States. Homeowners with high adjustable mortgage rates have a more significant … In terms of population density, that equated to 41.4 people living in every square kilometer of land (107.2 per square mile) and the country’s sparseness was highlighted by the fact that it was only the 169 th biggest in the world for density alone. Google Scholar provides a simple way to broadly search for scholarly literature. A few countries with high rates of HIV prevalence (such as South Africa and Zimbabwe) actually experienced increases in child mortality rates between 1990 and 2006. South Africa Business Etiquette. Scenic value is an important determinant of real estate value, and it is the critical factor as The country is the world's largest producer and exporter of gold, platinum, chrome and manganese, the second largest palladium producer and the fourth largest producer of diamonds - with mining rents accounting for around 2.2% of GDP (World Bank, latest available data), a similar share to manufacturing. ... Factors That Influence Real Estate 1. industrialized countries, and in high mortality regions, including sub-Saharan Africa. Real Estate 2020 Building the future As confidence returns to real estate, the industry faces a number of ... built environment. The overall sex ratio is still in favour of females, it This sets South Africa below the 14% average benchmark of efficiency-driven countries. Countries experiencing no fertility decline by region, 1995-05 ... (such as South Africa and Zimbabwe) Dutch traders landed at the southern tip of modern day South Africa in 1652 and established a stopover point on the spice route between the Netherlands and the Far East, founding the city of Cape Town. System of Registration. PwC Asset Management and Real Estate Leader for Africa, Ilse French, says: “The study goes on to examine how global megatrends will change the real estate landscape considerably over the next six years and beyond. Keller Williams South Africa recently held a series of seminars countrywide for local estate agents . Describing the current political landscape in South Africa as “noisy and disruptive”, Bishop talks about the Finance Minister’s growth plans, the impact of failing state-owned-enterprises and how we can achieve fast, sustainable growth. Two of the most significant demographic shifts that are occurring in Australia (and many other countries around the world) at the moment are: the ageing of the population. South Africa is home to some of the world’s oldest human fossils, and during the modern era the region was settled by Khoisan and Bantu peoples. When one think of South Africa, African American race comes to mind. Export. May 18, 2021. It is made up of six components: demographic, economic, physical, technological, political-legal, and social-cultural environment. South African businesses, and in particular the real estate industry, will have to start taking a real interest in technology to be successful in an increasingly competitive environment. Identifying the various stakeholders that operate within the Real Estate environment in relation to the role they fulfil. Customer Demographics in a Marketing Plan. Behind the headline number there is the South Africa, Land Use Bill, 2001. Environmental Factors in Real Estate Analysis. Ordinance 15 of 1986. Her knowledge of the macro and micro factors affecting the commercial real estate market results in proactively positioned research. Environment and Resources. As the largest manufacturing sector in South Africa's economy, vehicle and component production accounted for 29.9% of the country's manufacturing output in 2018 compared to … 38 percent more people over the age of 65. Ranked by the World Bank as an “upper middle-income country’, South Africa is the largest economy in Africa. South Africa’s economy fell into recession in Q4 2019, when real GDP contracted by 1.4%, following a decline of 0.8% in Q3, according to Statistics South Africa.. Environmental racism is a concept in the environmental justice movement, which developed in the United States throughout the 1970s and 1980s. The impact of country specific demographic factors on consumer behaviour. Per capita GDP is $6 483, according to the World Economic Forum. Africa’s gaps in convention energy structures provide opportunity for low-carbon solutions, especially since it holds more than half of the world’s renewable energy potential. Find out more about the main factors that come into play. The answer is more complex than it would seem at face value,” says Paul Stevens, CEO of Just Property. Let’s look at Nigeria, a country at the heart of Africa’s urbanization. The stable rate of inflation, stronger rand and decision by Moodys to maintain South Africa’s credit rating were key factors in the South African Reserve Bank’s decision to cut the interest rate by 25 basis points in March this year. Conversely, belonging to a union when you work in the public sector will put your wage 20.7% higher relative to unionized private sector workers. PwC Asset Management and Real Estate Leader for Africa, Ilse French, says: “The study goes on to examine how global megatrends will change the real estate landscape considerably over the next six years and beyond. South Africa Demographic Trends . Most obviously, they can cater to the increased demand for retirement villages, care and nursing homes. Every piece of real estate development impacts the environment in some way because development changes the natural interaction among land, water, and animals. Every piece of real estate development impacts the environment in some way because development changes the natural interaction among land, water, and animals. In many cases, development occurs specifically because people desire to utilize the natural environmental resources of a location. Through the ability to influence the levels of emigration from South Africa's shores, political events such as those of recent days, have a direct impact on the state of the residential property market. Its point along a trajectory of growth and demographic change can be located and described by outlining several large-scale phenomena of urbanization. This list of The Top Ten Big Demographic Trends will attempt to answer these questions: Where have we just come from, where are we now, and where are we going as a City? Commercial real estate owners and occupiers can respond to these demographic challenges in a number of ways. Demographic shifts will affect demand for real estate fundamentally. Part 2: The influence of politics on the South African economy - LISTEN BELOW. Demographics and Development in the 21st Century Initiative ... populous countries, could affect current United Nations (UN) population projections which predict a decline in global fertility to sub-replacement levels by 2050.6 Table 1. Act 32 of 2000. 2.2.1 Demographics (population and development profiles) Demographics can be defined as the most recent statistical characteristics of a population in a given area at a specified time 1. How new legislation will affect SA’s property industry. The six factors affecting the real estate market are: 1. An aging population. 4.1 Is all land in your jurisdiction required to be registered? A macro environment involves forces that affect the larger economy. The environment can also be defined as a set of natural elements, in particular land features, soil, fossils, water, air, flora, fauna, natural and man-made landscape. The newly signed Property Practitioner's Act is expected to have a major impact on the selling and leasing of property in South Africa. South Africa’s economy is the second largest in Africa after Nigeria but with substantially better infrastructure. Within South Africa’s high unemployment environment, wide-scale provision of social grants would help to offset the effects of less than optimal consumption levels and a low incentive for investment. The shutdown of non-essential services to control the spread of COVID-19 has had … Emerging Trends in Real Estate® The global outlook for 2019 5 Managing expectations According to Real Capital Analytics (RCA), acquisitions of income-producing commercial real estate increased by 3 percent to $963.7 billion in 2018, the third highest annual total on record after 2007 and 2015. In fact, the United Nations stated that Africa will experience a 16 percent rise in its urban population by 2050 - growing faster than any other region worldwide. “7 Real Estate Demographic Factors That Determine a Successful Investment” is our third in a series of blog posts on real estate investing. Physical factors of a property are important because they can be the driving factor behind a community’s economy. believed that demographics have very little or no effect on real estate prices. How will this demographic segment drive economic development? The white population group had the median ages of over 30 in all the three years under consideration; and this population group appears to be older than all other population groups. South Africa, Development Facilitation Act, 1995. These issues affecting the Nigeria real estate industry is the focus of this article. The burgeoning middle-class urban populations in Asia, Africa and South America will need far more housing. This is true for vast real estate investors in Zimbabwe. in demand for real estate. There are a number of factors that impact real estate prices, availability, and investment potential. Though abundant, solar power is untapped and underused accordingly. In contrast to renting, high-interest rates make rental attractive. Here are 4 of these factors: While demographic factors (such as age, race, gender, and median income) are often overlooked, they’re actually significant to property investors. Such factors will help you anticipate real estate market trends which, in turn, will influence your investment decision. Trevor 'Nightingale' Manuel and his colourful coterie of battle-hardened soldiers recently emerged from their year-long bosberaad at the National Planning Commission (NPC) with insights into the key challenges facing South Africa. A United Nations report released in 2017 puts the current world population at 7.6 billion people. The country remains rich with promise. Read More. FNB’s estate agent survey shows that the Gauteng residential market remains the strong point in South Africa in terms of stability. I have to say, as an industry I think that some Realtors are a little bit more focused on customer demographics than other small business owners are. The greater the level of involvement in a foreign markets, the greater the need to monitor the political climate of the countries business is conducted. Today’s worker is more mobile and more connected than ever before, which means that businesses can operate anywhere. Customers are generally influenced by a series of issues when making purchasing decisions. The Gross Domestic Product (GDP) for the first quarter of 2016 plummeted by 1.2% (Statistics South Africa, 2016) and the unemployment rate is currently estimated around 26.7% (Statistics South Africa, 2016). Main Sectors of Industry. Describing the economic environment affecting Real Estate. Fortin and Leclerc (2000) concluded that the real estate prices would not be significantly affected by demographic shifts, since the shift in real per capita income would be enough to … Most of growth in the population 65 or older – which will reach 66 million people by 2025 – will be young Baby Boomers born in the 1950s. The macro or the broad environment includes larger societal forces which affect society as a whole. by Guest20949135 | 10 years, 7 month(s) ago 5 LIKES Like UnLike. The demographic environment: ... After the repealing of the Group Areas Act and the democratisation of South Africa after our first free and fair elections for all races in 1994, different race groups and ethnicities started living together in the same neighbourhoods for the first time. environment characterized by high living standards, security and a high scenic value. Describe the demographic environment & effects of cultural diversity on real estate on South Africa . South Africa’s residential real estate market is the largest component of the South African property market, comprising most property assets within the country, and an important component of household wealth. At the 2001 Census, the final declared total for resident citizens in South Africa was 44,819,778. Environmental factors refer to the interaction between people and urban development with the natural environment. South Africa (Section 7). Real Estate Demographic Shifts. South Africa ... View survey results from our advisors on the opportunities and challenges facing law firms in a COVID-19 environment. Interest rates influence the monthly payment value for mortgages. Describing the demographic environment affecting Real Estate. Medium Variant Actual Data High Variant Low Variant Constant Fertility Scenario 1976 2014 2052 2090 0k 25k 50k 75k 100k 125k. It is predicted that nearly 50% of all current jobs might disappear by 2055, as a result of automation. Developers and landlords can either create new space, refurbish existing space or convert buildings currently with alternative uses. In the real estate industry, Nigeria is experiencing rapid urbanization, with an estimated annual national population growth rate of just over 2% and an annual urban population growth rate of about 4%.The population is becoming more and more focused to the urban areas, towns and cities with just under 50% of the population living in urban areas — and this number will continue to grow. This Increasingly, the current environment … While most of these trends are already evident, there’s a natural ... East, Latin America and Africa on a daily basis, attracted by the new wealth of these economies. It’s also important to understand that demographics change over time. Activity in the freehold market has strengthened in 2019, with 101 sales, the highest since 2016. Especially in mature urban centres, the pushback against escalating real estate leasing and ownership costs is escalating. Here’s how the coronavirus is affecting Canada’s labour market. How COVID-19 pandemic is affecting the property market. South Africa has an intermediary population, with the median age ranking between 22 and 25. Segmentation divides larger markets into smaller markets based on shared characteristics. Economic: Unemployment rates, economic growth, and interest rates can affect real estate. Renters are on track to comprise 58 percent of new households, which will drive demand for multifamily housing. The real estate sector is constantly affected by change either through the economy, legislation, innovation or operational factors. RE/MAX NATIONAL HOUSING REPORT Q2 2019 RE/MAX 12 Jul 2019 By 2030 this number is expected to increase to 8.6 billion and eventually 11.2 billion by 2100. Properties are being repurposed to accommodate the rising demand for one-day distribution.Vacant offices and shopping malls that can’t compete with online sales are being converted to meet consumer demand for faster product delivery. Demographic Factors Affecting Real Estate. . 1. There are various factors that affect property pricing in South Africa. South Africa Area and Population Density. Identify at least 2 political / social / economic factors that have an effect on the economic environment currently, and explain how it affects the real estate market. These changes affect real estate values. A high-interest rate era would increase mortgage costs and reduce the demand for a house to be purchased.
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