Factors Affecting Foreign Direct Investment

1
Demand and Supply of Housing

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2
Introduction

• Every person in the world deserves a better home.
  
• Governments in the world have come up with great
  housing initiatives.
• This is to ensure there are good homes for their
  citizens.
• Most of the cities in the world have stocks of
  housing.
• Nevertheless, there are a number of factors
  affecting demand and supply of housing.

3
Affordability

• There has been an increased income for
  individuals.
• Many people have been able to afford and spend
  certain amount on houses.
• Demand for housing has always risen during times
  of economic growth.
• Demand for housing has been a luxury good for
  many years.
• The rise in income has caused vast rise in
  demand.

4
Interest rates

• Interest rates help determine the cost of housing
  or mortgage interest settlements. 
• An increase in interest rates to a certain
  percentage will lead to a decline in demand for
  housing.
• Low interest rates have invariably spurred more
  people to buy homes.

5
Population

• Demographic changes have influenced the number of
  people buying homes.
• A large growing numbers of people living alone
  have pushed the demand for more houses higher.

6
Government regulations and policies

• Government rules and legislation can impact the
  supply and demand of housing.
• Firm regulations for planning approval of new
  house building may discourage investors. 
• Better and relaxed housing policies will
  encourage building and related services.

7
Unemployment and economic growth

• Falling unemployment and higher economic growth
  have an effect on housing.
• have all led to an increase in demand and supply
  of houses.
• rise in unemployment have made it hard for people
  to access houses.
• This can be through mortgages or the property
  market.

8
Other Factors

• Consumer confidence
• Mortgage availability
• Cost of renting
• Rate of inflation.
• Housing market represents the biggest single
  purchase and largest part of individual wealth.
• Changes in house prices have considerable effects
  on the rest of countries economy. hanges in house
  prices have considerable effects on the rest of
  countries economy.

9
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Housing

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