Property Industry Boosts New Zealand's Economy
New Zealand's economy has been steadily growing over the years, and the property development industry has played a significant role in this growth. Property developers are responsible for creating new buildings and infrastructure, which not only boosts economic activity but also creates jobs and supports the growth of other industries.
According to a report published by the Property Council of New Zealand, the property development industry contributed approximately $29.8 billion to the New Zealand economy in 2020. This figure includes the value of new construction, renovations, and infrastructure development.
One of the key benefits of property development is the creation of jobs. The industry directly employs over 74,000 people, and indirectly supports many more jobs in related industries such as architecture, engineering, and construction.
Furthermore, property development has a significant impact on local economies. When a new building is constructed or renovated, it creates a demand for goods and services such as building materials, furniture, and appliances. This, in turn, supports businesses in these industries and helps to create additional jobs.
In addition to creating jobs and supporting other industries, property development also has a positive impact on the property market. New developments increase the supply of available housing, which can help to reduce housing prices and increase affordability. This, in turn, can help to stimulate economic growth by freeing up funds that would have been spent on housing costs, allowing individuals to spend or invest elsewhere in the economy.
Overall, the property development industry is a significant contributor to the New Zealand economy, both in terms of job creation and economic growth. With the ongoing demand for new infrastructure and housing, it is likely that the industry will continue to play an important role in supporting the country's economic development.