Chartered Financial Analyst Level 2
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66 For all real estate property types, the most important factor that affects the performance outlook is:
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Last updated: February 8, 2026 at 14:02A
GDP growth.
B
business confidence.
C
consumer confidence.
Explanation:
Explanation
GDP growth is the most important factor affecting real estate performance across all property types because:
-
Economic expansion drives demand for all real estate sectors:
- Office: Business expansion and hiring
- Retail: Consumer spending increases
- Industrial: Manufacturing and logistics growth
- Residential: Job creation and income growth
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GDP growth directly impacts:
- Rental rates and occupancy levels
- Property values and capital appreciation
- Development activity and construction
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While business confidence and consumer confidence are important indicators, they are ultimately driven by and reflected in GDP growth, which serves as the fundamental economic driver for real estate performance across all property types.
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