Real Estate & Economy

Wednesday Jan 31st, 2018


Real Estate plays a vital role in any country’s economy. Residential real estate provides housing for families as well as it being a great source of wealth and savings.

Commercial real estate creates jobs and spaces for retail shops, offices, and manufacturing, and also is a reliable source of wealth and regular income.


Construction plays a role in the real estate, and it is the only part that is measured by GDP. It is labor intensive and that is why a drop in housing or commercial construction will cause a drop in the unemployment rate.


Real estate affects the economy as follows: a decrease in real estate sales will eventually lead to a decline in real estate prices. Which in return lowers the value of the estate prices, this could be followed by a fall in home equity loans that are available for owners, which ultimately forces consumer spending to cut back.

On average, 70% of a county’s economy relies on consumer spending, so when the spending drops, so will the economy!


Technology can also have an effect on real estate. Some jobs or tasks don’t require you to have a physical address anymore. You can be working on big projects from the comfort of your home without the need to rent or buy an office.


Other jobs on the other hand can never be affected by technology. Take medical centers for example, they can never be replaced by any type of technology. People still need to see a doctor when they have to and they can’t do it virtually. That is why investing in medical centers is the new trend of making money through real estate.

No need for a medical background, you buy the center, find physicians to work there, and have a property management company run the operation for you! Regular hefty income from the comfort of your home (or office).


The world is changing and we need to change with it. I am Alaa and I can help you make sense of it all! Call me with all your questions.

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