Real Estate Development Lecture 02 Raw materials needed Reading: Chapter 2 - REDPP 29 August 2011

Outline Background Demographic Trends in Ghana Economic indicators Population growth Employment by industry Economic indicators GDP, National wealth, economic cycles etc Land supply The future Raw materials needed

Background What are resources? Something that can be used for support or help An available supply that can be drawn on when needed. Examples (w.r.t. RE) Land People/ Human beings Capital Building materials Etc... Raw materials needed

People as a resource in RE Two perspectives.... People to need and use developments People to work on developments Resources required of people: Intellect Skills Knowledge Strength Etc... Raw materials needed

Demographic Trends in Ghana Population 24million from latest housing census (2010 national census) Employable population 1.2% of 5.5 million in 1984 ---- 66000 2.3% of 9 million in 2000 ---- 207000 Projection..... increased due to emergence of more main and peripheral services, migration, increase in population, need for development, etc Raw materials needed

Demographic Trends in Ghana Gender Age ---- different generations Increase in educated and educating populace Marriage Life and death Changes in family sizes Occupations Religion Other life style changes Raw materials needed

Economic indicators Emergence of oil Income level Middle and upper class Lower class Economic developments in the northern and southern sectors Availability of raw materials Emergence of oil GDP growth.... a developing economy Growth in industries Etc... Raw materials needed

Economic indicators Raw materials needed

Drivers of Real Estate developments The demand end.... Growth in population New households Jobs and business creation Technological developments Life style changes Migration Change in demographic --- age, gender, income status, marital status etc Etc... Raw materials needed

Land Supply Availability Right place at the right time Effects of demand and supply on prices Ownerships Government/ State Family Stool Acquisition Freehold System Lease Term System Acquisition Strategies Options on land Partnership Agreements Equity terms Lease Freehold Raw materials needed

The future Opportunity for growth but, doing it right is the key to success Growth of main and peripheral services due to: Developmental needs Globalization Availability of resources Developing economy.... Oil find Opportunities of entrepreneurs Benefits to nation Drive growth, Curb housing deficit, Curb unemployment Etc..... Raw materials needed

Questions to ask you..... What role did the RE industry play in the current financial meltdown? Are resources available in Ghana? Does the generation controlling the mass of wealth in an economy affect how that economy will respond to RE? Raw materials needed