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Tuesday, 15 November 2011 08:29

The contributions of REITs to making the real estate industry more professional have a significant economic impact in terms of both job and GDP growth. According to the Association For Real Estate Securitisation (ARES) (2012), the cumulative economic effect of Japanese REITs between 2001 to 2011 was estimated to be approximately ¥31 trillion, a 0.3% contribution to Japan’s GDP growth. Over the same period, employment created was estimated at approximately 300,000 persons. ARES reported in 2012 that Japan employed 83,000 people directly with REITs. Furthermore, ARES (2012) forecast that the contribution of the REIT sector to GDP will rise to 0.6% per annum by 2020 and its employment contribution will be an additional 128,000 jobs, if the REIT sector doubles in size this decade. While REITs have grown as a new industry in itself, they have also promoted the growth of related professions. A PwC report (2012) showed that jobs are created throughout an asset’s life cycle, from the construction phase (42% of work hours generated), major asset enhancement (29%), light refurbishment and improvements (25%) and during extension work (4%). REITs also need services from law, accounting, and real estate services. Increasing professionalism of REIT managers will encourage the service providers to evolve their services. Studies in France also showed that REITs have created employment. PWC (2012) reported that SIICs (French REITs) created 66,300 jobs in 2011, representing an increase of 24.4% since 2003. By 2016, PwC (2012) expect that SIICs will generate an additional 140 million working hours in the construction/public works sector and 33,700 permanent retail jobs (The Impact of REITs on ASEAN Economies – April 2014).

 

Commission a Report From Us (any sector / country)

 

Sample : 10 of the largest US REITs with a Market Cap of over USD$10bn (as at mid-2012).

 

Annaly

 

Avalon Bay

 

Boston

 

Equity Residential

 

HCP

 

Host

 

Public Storage

 

ProLogis

 

Simon

 

Ventas

 

 

 

 

Last Updated on Wednesday, 16 April 2014 02:01