Macroeconomic factors lead growth in real estate market
Macroeconomic factors have played a significant role in the growth of the real estate market in Fiji.
As the economy becomes more stable and prosperous, people have more purchasing power, leading to increased demand for properties. Population growth, both domestic and international, has also fueled the need for more housing and commercial spaces.
Real Estate Agencies Licensing Board (REALB) chief registrar, Peni Komainavoka said factors such as economic stability, population growth, tourism, and infrastructure development have all contributed to the expansion of the real estate sector.
He said such macroeconomic factors have created a positive environment for the growth of the real estate market in Fiji.
Economic growth
A growing economy tends to stimulate demand for real estate.
As Fiji’s economy expands, driven by sectors such as tourism, agriculture, and services, there has increased demand for residential, commercial, and industrial properties.
Foreign Direct Investment (FDI)
Inflows of foreign investment can stimulate real estate development, particularly in commercial and tourism-related properties.
Fiji’s attractiveness to foreign investors, coupled with Government policies supporting these investments, can bolster real estate growth.
Infrastructure Development
Investments in infrastructure such as roads, airports, and utilities enhance the attractiveness of real estate properties. Improved infrastructure can open up new areas
for development and increase property values in existing areas.
Tourism Industry
Fiji’s tourism sector is a significant
driver of economic growth and a key contributor to real estate demand, particularly in areas popular with tourists.
Growth in tourism can lead to increased demand for hotel accommodations, vacation rentals, and commercial properties.