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Real Estate Overview

The real estate industry encompasses the many facets of property, including development, appraisal, marketing, management of commercial, industrial, and residential properties. The real estate industry fluctuates depending on the national and local economies. The very essence of the real estate industry works by constructing buildings in order for buyers and sellers to make transactions. Oftentimes, there are buyers and sellers within the real estate industry and is often a tool used for investing and creating wealth. The real estate industry plays a huge role in the economy and is usually tied with the performance of the economy, and on top of that it also plays an important role in driving and stimulating economic growth.

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An expanding economy could lead to new business formation and the growth and expansion of existing businesses, all of which can also lead to increased demand for real estate. The converse, however, might also be true: A weakening economy can hamper demand for real estate, which can put downward pressure on the performance of existing commercial properties. This could negatively affect real estate, particularly investors focused in the types of properties, industries, or geographical regions that are most severely harmed in an economic downturn. Some features of the real estate industry is that there are different characteristics that differentiate it from other assets in the economy. The first one is immobility. While some parts of land are removable and the topography can be altered, the geographic location of any parcel of land can never be changed. Indestructibility, land is durable and indestructible and permanent. Uniqueness. No two parcels of land can be exactly the same.

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