Discounted cash flow analysis

Housing investment is the largest single form of fixed capital investment in most economies, developing or developed. In developing countries, the shelter sector usually ranges from 10 to 30 per cent of household expenditure, or 6 to 20 per cent of GNP. Housing investment typically comprises from 10 to 50 per cent of gross fixed capital formation. Further, housing investment’s share of GDP rises as economies develop.1