The real estate industry in Asia has been booming in recent years. This is due to various factors, including population growth, economic development, and urbanization. Different countries and regions have also reached the trillion-dollar mark regarding GDP earnings. China, for example, has been growing for 30 years and is approaching the $10 trillion mark. Because of this growth, various countries have a dire need for real estate.
Why is There a Growing Need for Real Estate in Asia?
There are three main reasons why the need for real estate is growing in Asia: population growth, economic development, and urbanization.
Population Growth
Asia is the most populous continent in the world, with over 4 billion people. This represents approximately 60% of the world’s population. Moreover, the region is projected to grow rapidly, with the population expected to reach 5 billion by 2030. This population growth is one of Asia’s main drivers of the need for additional real estate development. However, other countries are in dire need of real estate because of their population growth. Here are those countries.
The Philippines
One of the countries with fast population growth is the Philippines. There are currently over 100 million people living in the Philippines, which is expected to reach 150 million by 2050. This rapid population growth has strained the country’s infrastructure and housing stock, creating a high demand for real estate development. Additionally, as the country grows more affluent, there is a growing need for luxury property developers. Certain pieces of land, such as Manila Bay, are prime spot for property development and are thus targeted by several luxury developers.
Indonesia
Another country that’s experiencing rapid population growth in Indonesia. Over the past decade, the country’s population has grown by almost 40 million, which is expected to continue. Many developers have focused on Jakarta, Indonesia’s capital city, to meet this growing need for real estate development. Jakarta is one of the most populated cities in the world, with over 30 million people living there.
Economic Development
In addition to population growth, economic development is also driving the need for more real estate in Asia. The region has seen tremendous economic growth recently, with several countries becoming major global powers. This has led to an increase in both domestic and foreign investment, which has spurred further economic development. As a result of this economic growth, there is an increasing demand for office space, retail space, and other types of commercial real estate. Three countries require real estate due to economic development: Singapore, India, and Malaysia.
Singapore
No other country is more prosperous than Singapore. The country has one of the world’s highest GDPs, with a per capita income of over $60,000. This affluence has led to a growing demand for commercial property as businesses look to expand into Singapore. There is also a demand for luxury real estate developments in the city-state.
India
After years of strong economic growth, India is one of the world’s fastest-growing economies. This has rapidly expanded the country’s property market, including commercial and residential real estate. As more foreign investors enter the Indian real estate market, it is expected that the industry will continue to expand over the coming years.
Malays
Malaysia
Another country that’s experiencing strong economic growth is Malaysia. The country’s economy has expanded rapidly over the past decade, driven by a boom in manufacturing and exports. This economic expansion has increased employment and wages, which has increased domestic consumption—the need for more real estate, especially in commercial properties. Cities like Kuala Lumpur and Penang especially need additional commercial property development.
Urbanization
Urbanization is another factor driving the need for additional real estate development in Asia. Urbanization is the process by which people move from rural to urban areas. This migration is often caused by economic factors, such as job opportunities and higher wages. Urbanization leads to an increase in the population of the urban regions, which creates a need for additional housing and other infrastructure. A country that requires more real estate due to urbanization is Thailand.
Thailand
Thailand is one of the most urbanized countries in Asia. Over 70% of its population lives in urban areas, with Bangkok home to over 10 million people. The high level of urbanization in Thailand has led to a growing need for real estate development as the country’s infrastructure struggles to keep up with this growth. As a result, developers have focused on building several large-scale housing and office developments in major urban centers like Bangkok. Moreover, the need for more real estate shows no signs of slowing down as Thailand’s economy grows rapidly.
The need for real estate in Asia has been growing rapidly. This trend is expected to continue as the region develops economically and its population grows. As a result, there will be increasing opportunities for investors interested in developing commercial and residential properties in Asia.
