The Importance of the Real Estate Market and Its Impact on the Economy

Dr. Mons Shujaa

The real estate market one of the most important commercial markets influencing economic and commercial activity in general, where real estate is primarily traded. We can define real estate in its simplest terms as “any fixed and stable asset that cannot be moved from one place to another, such as land and buildings of all kinds”

The importance of the real estate market clearly lies in the fact that it has a significant impact on numerous commercial and government activities. Every investment is directly affected by the real estate it utilizes, whether that investment is a commercial project—such as an exhibition hall or a store—or a private residential property for residential purposes or a multi-unit commercial real estate project offered for sale or investment.

Since the real estate market is subject to the economic equation of supply and demand—which governs market transactions and measures market performance and indicators—there is generally a direct correlation between increased demand and real estate prices. so as demand increases, real estate prices rise. This is also linked to the purchasing power of the end consumer; the greater their purchasing power, the greater the demand for real estate becomes.

A general economic recovery will lead to increased demand for real estate units, and financing programs and subsidized profit margins supported by the Real Estate Fund in cooperation with banks and financing companies will also contribute to this trend. Investment laws and freehold ownership also play an effective role in reviving the real estate market and increasing its contribution to the overall economic index and the country’s international competitiveness in attracting investments.

Specialist in Real Estate Finance and Performance

@MounesShujaa