THE ECONOMICS OF PROPERTY AND CONSTRUCTION

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THE ECONOMICS OF PROPERTY AND CONSTRUCTION Real estate development has been the center of attraction for new investors. In the late 20th century, businesses have been expanding rapidly. This led to an increased demand of office space and property for business development and expansion. The expansion of the business sector was driven by the dire demand of goods and services by increasing world population. With increased population, firms were forced to invest more on their producing plants. This was meant to cater the increasing level of demand. Subsequently, in addressing the market demand, firms were called to employ more personnel to aid in its production. This led to the demand of the tertiary employees who were to inject their expertise in production to ensure quality and quantity products were developed. Employing additional staff meant increased demand of office space. Property developers were therefore called in to address the emerging demand for new office spaces. In addition, the demand for additional office space was also necessitated by the 20th century market liberalization and subsequent globalization. Globalization encouraged the movement of firms from their traditional locations i.e. mother countries to other nations. These relocations came with an increase in demand for both manpower and office space. From the aforementioned, it is apparent that globalization was the nerve driver of property development of most countries. In addition, it is evident that with it came an increased demand of service sector employees. However, this has largely changed in the 21st century (Havard, 2002). The demand for office space in the 21st century has largely reduced. Experts have