Property Market
The property market is where land and buildings are bought, sold and let, and where prices are set by supply, credit conditions and demand for space.
Why It Matters
Transactions are slow and infrequent, so prices adjust with a lag that can hide stress for a year or more after conditions change.
Related Terms
- Real EstateReal estate is land and the buildings on it, held for use or as an investment producing rent and, potentially, capital growth.
- Property ValuationProperty valuation is the estimation of what a building is worth, from comparable sales, from the income it produces, or from the cost to replace it.
- MortgageA mortgage is a loan secured against property, repaid over a long period, where the lender can take the property if payments stop.
- Cap RateA capitalisation rate is a property's net operating income divided by its value, expressed as a percentage: the unlevered yield the building produces.
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