Real Estate Development Contributes to Sustainable Economic Growth
I’m the co-founder a real estate development company. We’re focused on developing unique real estate projects in countries around the world. But what inspired me to launch this company was my passion for using foreign investment as a tool to improve the lives of local citizens.
I believe that real estate development has the power to transform the socio-economic landscape of any community. In undeveloped countries, the residual aspects of real estate development create tangible and measurable change for residents. I see real estate development as a legitimate vehicle in our striving to engage in effective altruism and bring sustainable solutions to solvable problems.
Bringing Life to Desolate Landscapes
Real estate development has been proven to be an engine that enhances the locale’s ability to attract new business. New projects serve as magnets, drawing retail and commercial enterprises, financial services, schools, and safe places for children to play.
A series of real estate development projects in Indonesia during 2015–2016 transformed unproductive land into affordable housing and commercial centers. Supermarkets, hospitals, schools, universities, restaurants, shopping centers were built in previously desolate areas.
In addition to essential services, Indonesia’s real estate development projects brought places of worship, sports and fitness centers, and community complexes. Green space for walking, biking, and other forms of outdoor activities became part of the regional landscape. The quality of life for Indonesians improved dramatically.
Addressing Housing Needs
The infusion of cash created by real estate development projects into local economies funds affordable housing units.
Approximately 15% of the world’s population resides in Africa (Real Estate Building the Future of Africa, 2025). The continent suffers from a severe housing shortage, among other challenges. In Nigeria alone in 2014, there was a shortfall of 17 million housing units. In South Africa, more than 600,000 college and university students lacked adequate housing for the academic year that began in 2015.
Real estate development projects across Africa are creating new revenue streams that enable local governments to address their populations’ needs. In addition to financing safe and affordable housing, the improved economy makes it possible to host critical government programs such as social services, community health clinics, and low-income financing for mortgages. Fertile ground for entrepreneurship is created. Financial services become possible for millions of unbanked citizens.
Real Estate Development Creates Jobs
Real estate development projects cultivate the proliferation of supplementary industries such as trucking, transportation, cement, steel, tile, aluminum, paint, and roofing. Construction-related jobs provide better wages, helping families build strong financial foundations. This money trickles down to the local economy as residents have money to spend on products and services. Off-site improvements to roads, water, and sewer infrastructure necessitated by real estate development projects benefit local populations.
A Positive Way to Overcome Stagnation
Real estate development plays a critical road in diversifying local economies. This is especially important for countries like those in the Caribbean that rely heavily on tourism. Robust local communities that have materialized because of real estate development projects can continue to contribute to municipal treasuries regardless of a downturn in tourism.
Summary
The strong multiplier effect of real estate development is undeniable. For emerging economies, it is an engine that can bring systemic improvement to local communities’ socio-economic status. Real estate development can be an important partner in nations’ efforts to lift their citizens out of poverty.
