Factors affecting demand in real estate

In economic term, demand will paly a major role in determing price of goods and services thru the forces of supply and demand in the market. The demand in real estate (especially income property) is relatively inelastic.

Factors which are affecting the demand in real estate are outlined as for the following:

• the state of economy
• during in a recession, businessmen will postpone investment and householders will be fearful of moving 'up market', and the reverse conditions will apply in a boom.
• the change in economic structure and business organization
• improving productivity and growth for business which then require more offices' or factories' spaces.
• the productivity of property
• relating to well strategic location which improve return to business
• the government intervention
• thru laws and regulations
• the change in transport facilities
• easy access of transportation will lead to high demand or vice-vis-versa.
• the size of population
• increase in number of population will positively bring impact to demand