Introduction

Colin A. Jones () and Edward Trevillion ()
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Colin A. Jones: Heriot-Watt University
Edward Trevillion: Heriot-Watt University

Chapter Chapter 1 in Real Estate Investment, 2022, pp 3-22 from Springer

Abstract: Abstract The chapter outlines some essential building blocks required to understand real estate investment decisions. It begins with the essential nature of investment and an introduction to the factors influencing motivations. The chapter then focuses on property investment and its specific qualities distinguishing between the ‘direct’ purchase of real estate and assets that are ‘indirectly’ linked as their returns are derived from the property market. The significance of real estate investment relative to other types of investments is also explained as well as the differences in the way they are bought and sold. Because of these differences, information on the property market is less transparent than for other types of investments. The chapter explains that the implications are that real estate trends are based on indices constructed by private organisations. The chapter also considers the basics of how the real estate market works. First, the economics of the determination of the rent of individual properties is set out. Second, the inter-relationships between the demand for space, investment and development are considered via a graphical model.

Keywords: Property investment; Financial environment; Property indices; Performance measurement; User demand; Determination of rental value; Property market dynamics; Direct real estate investment; Indirect real estate investment (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-00968-6_1

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DOI: 10.1007/978-3-031-00968-6_1

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