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You are here: Home / The Economics of Real Estate

The Economics of Real Estate

Land is deemed as one of the scarcest resources. Following the simple principle of economics of supply and demand, land, in character, has an invariable, unchanging and steady supply but an ever increasing demand. Thus, as market would dictate, the price of land will continuously increase over time. The foregoing simple analysis is an example of an application of economics known as real estate economics.Economics is the application of principle and techniques of economics to determine real estate market and trend. Real estate economics is not confined in forecasting though, through application of principle of economics and as an applied field in economics, would provide patterns on real estate trend in terms of the supply and demand side. Real estate economics is applicable not only in the residential real estate market but also in its implication on businesses and industry. In general, real estate as an industry, as seen in the stock market, is composed of businesses that are primarily involved in the development of land and other permanent fixtures that are introduced therein. Developments in land are those that are fixed and that, when evaluated, would increase the market and actual value of land. Real estate economics utilizes the… Read full this story

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The Economics of Real Estate have 289 words, post on ezinearticles.com at June 10, 2009. This is cached page on Vietnam Art News. If you want remove this page, please contact us.

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