Real Estate Market
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Real Estate Market is the market where exchange of real estate property takes place between buyers and sellers. This real estate property is of two types-Commercial Real Estate Property and Residential Real Estate Property. Based on these two types of real estate property, Real Estate Market can be classified into Commercial Real Estate Market and Residential Real Estate Market. In the Commercial Real Estate Market, purchase and sell of real estate property like office buildings, office complexes, industrial premises, retail spaces take place.
Real Estate Market is the market where exchange of real estate property takes place between buyers and sellers. This real estate property is of two types-Commercial Real Estate Property and Residential Real Estate Property. Based on these two types of real estate property, Real Estate Market can be classified into Commercial Real Estate Market and Residential Real Estate Market. In the Commercial Real Estate Market, purchase and sell of real estate property like office buildings, office complexes, industrial premises, retail spaces take place. In the Residential Real Estate Market, purchase and sell of real estate property like houses, bungalows, condominiums, duplex homes take place.
Main Participants of Real Estate Market
- Owners-Owners purchase commercial or residential real estate property and use them for business or office purposes and for living purposes respectively.
- Investors-Investors purchase real estate property but they don’t use the property personally. They rent out or lease out the property. Sometimes they buy the commercial or residential real estate property only to earn profit by selling them in the future at higher prices.
- Renter-Renter is a person or a business house that consumes a residential or commercial real estate property by paying rent to the owner of the property.
- Builders-These people acquire lands and build the offices, houses and all other types of commercial and residential property on raw land.
- Renovators-These people renovate old real estate properties and sell them in the market.
- Facilitator-These are the banks, real estate brokers, lawyers and other persons who facilitate the process of buying and selling real estate property.
Demand and Supply in Real Estate Market
The total demand of real estate market is generated by the demand of owners, investors and renters for real estate property. And the total supply of real estate market comes from the builders and renovators.
Main Characteristics of Real Estate Market
- Durability-Real Estate Property last for long time. So, the major part of the supply of real estate property comes from existing real estate property and a minor part comes from the new developed ones. To determine the total supply of a period, one has to consider the following things:
- Existing stock of real estate property
- The rate of deterioration of the existing stock
- The rate of renovation of the existing stock
- The rate of new development of real estate property
- Immovability-Real Estate Property is immovable in nature. For this reason no physical marketplace exists in the Real Estate Market.
- High Transaction Cost-High transaction cost is associated with Real Estate Property. The search fees, legal fees, registration fees and other different kind of fees sum up to a reasonably high amount.
- Uniqueness-Every real estate property is unique from the point of location, quality and financing.
- Consumption Good cum Investment Good-Real estate property can be purchased for own consumption or for investment purpose with the aim of earning a high return by selling it in the future.
- Lengthy Transaction Process-The financing, the construction work and the deal associated with purchase of real estate property takes long time to be completed.
Real Estate Market Investment
Investment in the real estate market is taking place at a larger extent as the demand for housing is rising very fast these days:
Real Estate Market Analysis
Real Estate Market Analysis gives a clear picture on growth in real estate market, profits in real estate market etc. Analysis on Real Estate Market is given here:
Real Estate Market Price
Simply the real estate market prices can be defined as the price that is given by the buyer to the seller at the time of having Real estate:
