As domestic markets within real estate slow down so the need to explore other locations gains extra importance. Saturation, economic changes and the global recession has hit development chances and finding more profitable regions overseas is being explored more and more. China for example, experienced record growth in recent years and the real estate firms utilised this to their gain but in the last few years they have had to find overseas regions to move into. The Chinese economy began to plateau a few years ago and, as is usually the case, the domestic market became too competitive and the demand for development has reduced.
Moving into the real estate development field remains a highly regarded career path because there are always new avenues to find and there will always be a need for new housing or commercial projects given how the global population increases and the needs change. The trick is knowing where and when to invest, otherwise ground can not only be lost (both literally and metaphorically) but incorrect decisions can blow a real estate developer’s business with potentially terminal consequences. The levels of capital involved in the field dictate that making the wrong moves can take years to rectify or in worst case scenarios even lead to liquidation.
Australia has become a location in which some of the global giants have made a concerted effort to take advantage of. Going back to the example of China, the ability to find valuable returns outside the domestic market is a big influence on Australia property development. But for what reasons?
The way that we shop has changed significantly and due to this city centres have changed. Where once the high street would be a throng of shopaholics, more of us now shop online. Therefore the way to attract customers back has been to make the experience more than just shopping. People expect malls stacked with entertainment beyond just pure retail so it can become more of a focal point of socialising. Better infrastructure promotes this as out of town centres pop up or new clusters of activity emerge. Australia is experiencing a real boom with regards to its own infrastructure. As this blossoms so real estate developers have new markets to tap into and there are fewer places better than Australia currently.
The country has a large need for extra housing particularly. Whilst this is true in many places Australia is particularly noted for this at the minute. The influx of skilled migrants only exacerbates this demand. So the big players in the game are taking advantage of this with their real estate development enterprises. Groups such as Greenland Australia Property Developers have invested in enormous projects in areas such as Sydney to fulfil the growing demands within Australia.
Returns on investment are clearly one of the major factors in any development business and this is something Australia provides better than most. The rates on taxation set for overseas investors makes the region incredibly favourable to get in to. As a developer you should be looking into job opportunities within Australia currently as there is sure to be more chances here than most other places.