A real estate company is a company that is dedicated to developing operations related to real estate.
The adjective real estate refers to that belonging to or relating to immovable things . A property , for its part, is an asset that is inseparably linked to land, both physically and legally. Buildings and plots are real estate.
For example: “The government announced that it has authorized a real estate development on the southern beaches,” “I am very happy: they have granted us a real estate loan to build a new house,” “The real estate offer in this neighborhood is very varied and You can find everything from old houses to brand new properties.”
What is real estate
As a noun , a real estate company is a company dedicated to the construction, sale, rental and management of homes . Each real estate agency can carry out all of these activities or just some of them (such as limiting themselves to the sale and rental of properties): “Tomorrow we have to go to the real estate agency to sign the rental contract,” “The manager of the real estate agency said it will happen tomorrow .” for the house to appraise it” , “We have already visited four real estate agencies and we have not yet found any home that meets our needs” .
The real estate agency, in general, has a place where those interested in real estate can come to consult the offer of homes for rent or for sale, as well as to offer their own homes. The real estate agency is in charge of promoting the proposals and carrying out the corresponding procedures to bring the parties together, charging commissions for this.
Let's see how the business works. A man asks a real estate agency to arrange the rental of a house he owns. The real estate company publishes an advertisement in a newspaper and a family approaches willing to rent the house. When the operation is completed, the real estate agency charges a percentage of the contract to the owner of the house and another to the person who rents it.
A real estate agency can act as an intermediary between someone who wants to sell a house and someone who wants to buy it.
Global bubble
The concept of global real estate bubble refers to the increase in real estate prices that took place in a large part of the Western industrialized countries between the mid- 1980s and 2006 . This increase far exceeded in proportion that suffered by other goods and services and caused an inevitable generational fracture, since housing is a basic good for any human being.
The explosive increase in prices in the field of real estate took place in two periods: the first occurred in the second half of the 1980s; the second, in the first half of the 2000s. Some of the official organizations whose reports reflect this situation are the American Federal Reserve and the OECD .
In Germany the situation was different due to the costs of German Reunification (the political and social changes that took place between 1989 and 1990, which ended when the former German Democratic Republic and the Federal Republic of Germany were unified). Japan was another of the industrialized countries that experienced the real estate bubble with certain peculiarities, especially due to its extraordinary initial rise, which led to an earlier burst.
The real estate industry and the economy
The disasters that arose from the real estate bubble were greater than necessary thanks to the fact that the specialized media and relevant experts in the world of economics took too long to report the situation, and distorted the data so as not to communicate completely. clarify the situation that was actually experienced.
Although the form and intensity with which each country was affected by the real estate bubble was different, the following countries experienced it in the same two periods indicated in previous paragraphs, so it is possible to say that they suffered the same phenomenon : Australia , Denmark, Belgium, Greece, France, Ireland, Holland, Italy, Norway, Portugal, Spain, Sweden, New Zealand, South Africa, the United States and Great Britain.