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