The real estate market is the market place in which all the commercial and residential properties are sold in. Real estate is also property consisting of the buildings and land on it, and its accompanying natural resources like water, minerals or plants; and its related rights; an individual’s right to enjoy the use and benefit of the said property, in particular in respect of immovable property. Real estate markets provide the most opportunity for investment, with a direct connection to the financial well being of the nation. In addition, real estate markets provide the largest pool of project capital for development projects. It is a market where both the buyer and seller can effectively negotiate and settle their prices.
With the recent sale of property by an occupant of the premises, the former owner is considered to have relinquished his rights to the property as well as the obligations associated with it in respect of the obligations of the lease/share agreement. This also implies that the previously held property has become inoperable. A recent sale of a piece of real estate by an occupant of the same premises, therefore, indicates that the occupant is no longer occupying the property as at the date when the occupancy agreement was executed. Such sales are termed “recent sales” in the real estate market and are reported separately in local real estate market data. The real estate market also includes transactions that have been consummated but not yet completed such as “as is” sales.
There are various factors affecting the rates of the real estate market. One such factor influencing the rates is the level of inflation. The rate of inflation directly affects the cost of living of an area and thereby indirectly influences the rate of real estate investments. As more people opt to live in urban centers, and with more investments in metropolitan real estates, the competition in the local real estate market will only be increasing.