Economic condition and property sector
Economic condition can be referred to the state of economy of any region, city or nation. Economic condition is subject to constant changes due to business or economic cycles. Economic condition changes due to the contraction and expansion of economy of the nation. Booming economy creates more employment opportunities due to which buying power increases. Ultimately people buy more homes and this increases high demand for property and prices increase. Whereas declining economy results in job loss and purchasing power decreases. This ultimately reduces the property demand and property prices fall. Lets discuss the relation of economic condition and property sector in detail.
Relation between Economic condition and property sector
Economic condition has great impact on property sector and property price. When economy is booming, there are more jobs. Due to high employment rate people have more buying power and can buy more houses. This ultimately increases the property demand and house price increases. Whereas when economy is contracting, there are job losses. Due to high unemployment rate people have less buying power and can buy fewer homes. This results in less demand for houses and property price falls.
Impact of economy on Pakistani property sector
Pakistan is one of the fastest developing nations of the world with booming population. There is always high demand for houses due to large population. Economic growth has great impact on house price in Pakistan. Pakistan economic boom was witnessed from 2001-2005. This was the time when Pakistanis living in USA settled back in Pakistan and invested their capital in different sectors. This was also the time when Pakistan got massive aid from NATO forces due to collation partner in Afghan war. Due to the booming economy, job creation was high from 2001 to 2005. This resulted in high purchasing power and people bought more houses and property prices increased.