Real estate sector estimated to be an emerging trend globally with substantial growth and capital stability which allow investors to decide their investment which gives higher potential return with support of established business models. Global economies like New York, Hong Kong and UK are the countries recovered from the global economic crisis and estimated to be outperform in the market nowadays. According to the statistical survey conducted in 2016 shows that 37 percent of home sold in USA were repurchased and allocated to investment basis. Owing to this factor, the interest rate and inflation depict an upside movement in 2017.
Due to the increment in population growth and the emerging trend in the household sectors, both developed and emerging market is forecasting a positive outflow for investment in real estate. In the real estate sector, commercial real estate category contributes towards better sectorial growth. In addition to this, new government interventions and reforms are opened for the availability of increasing housing spaces. The potential Investors who wish to diversify their portfolio within Real estate, can opt for Commercial real estate.
According to RCA statistics, Asian market such as Hong Kong and Singapore shows an increasing percent of 7 in the commercial real estate segment in 2017 due to the advancement of business model and different asset classes with higher growth dividend. European economies like Germany, Berlin etc. experienced growth and this trend will improve over the next ten years. Thus, the industry is becoming more transparent because investors prefer to Invest in the high-quality asset by expecting more return.
In the investors perspective, high portfolio allocation such as pension funds and sovereign bonds is enhancing tactical shift to real estate sector. This change is due to the search of high target return with minimal risk and better yield to mollify their liabilities arising from default events.
The midyear survey conducted in USA shows that, of the total 100 percent,60 stated that the introduction of new taxation will not affect the real estate segment negatively and the reform will give rise to investors demand and 24.7 percent depicts, the new tax law will benefit the space demand in the emerging market.
Industry Analysis for Education sector in Developed, EU and emerging market
One of the transpire trend in global scenario is the emergence of impact investment funds which focus on financial return on one side and creating a positive outlook towards environmental and social changes. In the global economy, Impact investment in education sector have a fledgling effect compared to other growing sectors. According to the report given by global impact investing network shows that 5 percent of assets in the impact funds are reserved for the education sector which is very low proportion but there exists a positive outlook in the mindset of investors towards the education sector. The survey conducted by GIIN shows that of the total 100 percent, 36 percent are projecting to allocate more weightage to the education sector.
In Asian market, Indian Economy proves to be a growing profitable sector for investing in educational sector. It is noticeable that investment in this area visualised a tremendous increment due to the population growth and the enough buying power of the public. For instance, India represent the smallest country in terms of population statistics and there is 140 million considered to be aged children in school. In the perspective of US economy, the education industry is growing 5 percent annually. The industry is providing quality products to stimulate demand among the students and the skilled people. Technological advancement paves a greater change in the educational sector by the introduction of corporate online programmes and training. Since 2007, in USA nearly 9.8 billion were allocated towards educational industry.
According to European region investment funding statistics, 2.26 percent represent the contribution for educational frame work. German government focuses on internationalizing policy for the educational industry is a positive approach thus it has a great impact on economic spill over. The government offers advanced opportunities to the international students like free tuition fees and scholarship which tends to provide international mobility to the students from different part of the world. Undoubtedly, among the European countries, Germany offers better investment opportunities in the educational sector.
Many researches pointed that investing in educational industry for the upcoming years provide high returns to the investors due to the equal opportunities offered by global economies and technological growth on the other end. The emerging markets like India and Brazil shows that, between the period 2012- 2022, the working age population tends to increase by 14 and 18 percent respectively. In contrast, European region shows a decreasing trend towards this. Statistical reports proved that, Indian market will be in the topmost position in terms of working age population in the demographic division.
In summing up, global corporations invest high proportion in the education sector compared to health industry. In this developing modern world, skilled people are migrating from developing countries to the US and European region in search of better opportunities. Thus, investment in education sector requires long time for the potential growth and return.
Industry Analysis of Energy sector in Developed and emerging markets
The outperforming demand for energy Sector is an increasing drift globally and the overall size of energy represents $ 7 trillion. Among the top twelve companies in the worldwide in terms of profitability, ten industries are showing their excellency in the energy industry and this sector produce high revenue growth comparing to other sectors. The forecast given by international energy agency shows that, the demand for the sector will reach the peak by 40 percent by 2035. The emerging markets like China and India contribute towards the sectorial growth by 2/3rd position.
To increase the demand for the sector, global economy should allocate $ 38 trillion towards entire energy production. Thus, it stimulates decent return over the next decades. For instance, between the period 2003 – 2014 Exxon Mobile has returned a percent of 140 compared to Dow Jones (40 percent). There is a co-existing relation between oil and gas industry and commodity sectors. When the demand for commodity sector decline, the oil and gas sector show a downswing trend and vice versa.
The improvement of technology and growth of economic have led to a lower price and optimal utilization of resources There is a higher demand for U.S energy product, especially renewable energy like natural gas. Due to uncertainty and evolving drift in the sector, the potential investors should analyse the industry outlook and evaluate production volume and prices to generate long term return.
In the Porter’s Five Forces Framework, there are five factors that have a great impact on the competition of industry. They are separately threat of entrants, threat of substitutes, power of suppliers, power of buyers and rivalry among industry’s firm. By analysing energy industry with this model, the probability and potential future development can be explained more specifically.
Threat of substitutes Transportation biofuels, national petroleum. Power of suppliers Supply shortage led to dramatically increase of oil price in 1970s; oil suppliers has a great impact on market operation and stability.
Power of buyers In a powerful position to bargain prices, demand better quality and service rivalry among industry’s firm:
Slowdown in production
Goal beyond economic performance
The United States will become a large energy exporter and has an increase in energy production and consumption over the nest decades. Among these industries, the consumption of natural gas performed better and accounts for the largest proportion in consumption market of energy.
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