Residential Construction Industry

Residential Construction Industry is especially concerned with the construction of homes required for residential purposes. These houses meant for personal occupancy come in varied forms, namely, single family occupancy type, duplex buildings, residential apartments in the form of flats, etc.

Residential Construction Industry involves two types of constructions:-

Residential Construction Industry is especially concerned with the construction of homes required for residential purposes. These houses meant for personal occupancy come in varied forms, namely, single family occupancy type, duplex buildings, residential apartments in the form of flats, etc.

Residential Construction Industry involves two types of constructions:-

• Construction of the newly built houses for residential purposes
• The already existing residential houses or apartments require repairing, modifications, and improvements for betterment of the same.

The growth rate of Residential Construction Industry is highly correlated with the economic growth of the economy. Economic growth makes people to migrate from the rural to urban areas for the search of a better. This phenomenon is glaring in China. At present, the Government of China is taking certain steps for cooling off the over-heated economy but the Residential Construction Industry is expected to grow at a far accelerated pace from the mid 2008. This prediction is done with much conviction by the analysts on the basis of the continuing strong performance of the economy along with high rate of migration of people from the country sides to the urban localities. This migration is creating increased need for their residence which is again increasing the propensity for Residential Construction Industry.

Currently, the construction of the dwelling houses are facing grave problem in United States of America. The main reason behind such a downturn lies in the over production and the consequent glut that has occurred in the residential real estate market. The situation has worsened due the fall in domestic demand for residential housing. The sales of the newly built houses have fallen significantly in United States and this trend is expected till the third quarter of 2007. From the last quarter of 2007, this trend in Residential Construction Industry is going to see a reversal and the market would stabilize around mid part of the financial year 2008.

In India Residential Construction Industry is going through a boom and is expected to continue for some time from now. But in the very recent past this industry has observed a partial slow down. The reason behind such a situation can be attributed to the decision of the Indian apex bank (Reserve Bank of India) to raise the interest rate of the housing loans. RBI has done this as a precautionary measure against the over-heating of the economy.