The real estate market refers to the property industry, encompassing the sales and rental of residential, commercial, and industrial properties. It is a large and complex sector, with a wide range of potential buyers and sellers. Real estate agents and brokers act as intermediaries in the process, helping clients navigate the market and ensuring a successful transaction. They also have a thorough understanding of the industry and the laws that govern it.
The market is driven by a variety of factors, including economic growth and technological advancements. These trends can affect the demand and price of different types of properties. For example, rising interest rates can increase the cost of borrowing, reducing demand and impacting prices (Colliers International, 2021). Meanwhile, changes in government policies can create new opportunities or restrict them (World Green Building Council, 2021).
Other major drivers include demographic trends, which influence household formation and property preferences (Colliers International, 2021). For instance, increasing numbers of people are working remotely due to the COVID-19 pandemic, changing their lifestyles and home buying needs. This has led to a shift towards more flexible and energy-efficient living spaces.
The real estate market is a global one, with hundreds of local and regional markets that operate independently. However, these markets can be compared to each other by using statistical models and data. These models and data can help understand the global patterns that are occurring, as well as predict future trends. They can also be used to compare and contrast the performance of different cities or regions.