| Real Estate can be categorized into two types, | | | | flourishes. |
| namely, Residential Real Estate and Commercial | | | | Now, let us visit the market conditions of this |
| Real Estate. Residential real estate market is | | | | sector in some of the important countries. |
| basically concerned with the construction of the | | | | Real Estate Market in USA |
| buildings and homes meant for residential | | | | In the year 2005, this market has seen a |
| purposes. On the other hand, Commercial real | | | | phenomenal rise. Los Angeles has itself observed |
| estate market deals with the construction of the | | | | a phenomenal rise in the prices of residential real |
| buildings and apartments specifically meant for | | | | estates amounting to above 14 % during the five |
| official and commercial purposes. | | | | year period between 2000 and 2005. But in the |
| A high degree of correlation has been observed | | | | year 2006, this market has seen a fall in their |
| between the growth rate of both economy and | | | | sales. This excess supply has caused glut in the |
| the Real Estate. Another observation highlights the | | | | market with unsold new houses piling up. Current |
| fact that at the time of economic uptrend the | | | | condition worsened when the mortgage market |
| performance of the real estate sector remains | | | | panicked and the stock market evidenced heavy |
| phenomenal. But at the later stage of the boom | | | | decline in prices of the real estate companies. |
| period, the commercial real estate sector jumps | | | | Thus, the housing market has seen a declining |
| to the fore and performs extraordinarily. Thus, it | | | | slope in the year 2006 which is continuing till date. |
| has been empirically proved that the commercial | | | | But this fall is partially compensated by the |
| real estate market reacts with the boom but with | | | | phenomenal rise in the commercial real estate |
| a lag. | | | | market which has increased at the rate of twelve |
| Some of the aspects that help Real Estate | | | | percent in the financial year 2006. |
| Economic growth of a country. | | | | Real Estate Market in India |
| Money trickles down to all sections of the people. | | | | This sector is passing through a booming phase |
| The fruits of the economic growth are first | | | | during the present time. According to the CEO of |
| relished by the urban society. Thus, a huge | | | | a real estate development company, Dun & |
| migration of people are observed from rural to | | | | Bradstreet real estate industry in India is |
| the urban places. This migration leads to the | | | | increasing at a break-neck speed of around 30 %. |
| increase in demand for more residential places. | | | | This industry is contributing around seven percent |
| Economic growth gives enhanced profit to the | | | | to the national income of India. The total amount |
| Corporate sector. Large parts of the profit is | | | | of loans forwarded by the financial institutions |
| generally used for enlarging the business. Thus, | | | | including the banks has seen a phenomenal growth |
| along with increase in business opportunities, the | | | | of around twelve thousand crore rupees between |
| demand for office spaces increase and | | | | the year 2005 and 2006. |
| consequently the commercial real estate market | | | | |