Real estate market

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In the real estate industry , the real estate market is a market where the sellers and buyers of real estate come together.

General

Real estate is divided into residential and commercial real estate , which on the supply side constitute the most important sub-markets of the real estate market. Market segments are the demand groups of companies ( services , trade , industry , administration ) and private individuals . On the supply side , construction companies , housing cooperatives , housing companies and private individuals act as market participants as sellers or landlords (for residential real estate) and investors or project developers (for commercial real estate). Inquirers are tenants or property buyers . The market price on the real estate market is called rent or market value ( purchase price ). If supply and demand are balanced, there is market equilibrium , the prices are equilibrium prices . Market imbalance exists either in the case of a supply gap (e.g. housing shortage ) or a demand gap ( vacancy ). The real estate industry distinguishes between the sub-markets of the rental market , the investment market and the market for completions .

Peculiarities of the real estate market

Compared to other markets, the real estate market has specific characteristics, which are mainly due to the following aspects:

These peculiarities affect the market structure of the real estate market.

In addition, it should be noted that when goods market , especially in times of economic prosperity the offer competition generally plays a much greater role than the competing demands. In the real estate market, on the other hand, competition in demand is of great importance in prosperous times . Goods markets concentrate on easily findable and well-known supply locations (e.g. shops, department stores). In the real estate market, there is a constantly changing spatial distribution of supply. After all, the legal framework conditions of the real estate market are much more complicated than those of the goods markets.

Market structures

The market transparency is in the property market due to the heterogeneity of limited real estate. This lack of transparency creates transparency-creating businesses. That is why real estate agents and internet portals (such as ImmobilienScout24 ; in the USA many times more extensive: Zillow ) ensure that transparency is improved. Customers often have to make their investment or rental decisions on the basis of incomplete information . The realization of a building project (between 12 and 24 months for residential buildings and more than five years for industrial plants between building application and ready-to-move-in takes place ) results in long production times, so that an inelastic supply elasticity can be assumed because it is only possible to react to changes in demand with a greater delay . As a rule, construction activity follows demand with a lag effect . As a heterogeneous good, real estate is different in terms of its properties , but it can still be substituted to a limited extent .

The location-relatedness determines the value in use of real estate through exogenous factors, which are specified by third parties (such as a municipality ) (residential real estate: shopping opportunities , proximity to the workplace , social environment , transport links ; commercial real estate: purchasing power potential , pedestrian frequency , parking spaces ). Due to their lack of fungibility, real estate is subject to limited liquidity , which can be attributed to a group of buyers limited by the high capital commitment . The transaction costs are relatively high and average 12% of the purchase price (see additional costs when buying a property ). There are direct transaction costs ( real estate transfer tax , notary and court fees ) and indirect transaction costs (search costs or information costs due to the involvement of a real estate agent). In the case of liquidity, the length of the liquidation period must be taken into account. Liquidability requires functioning markets. The higher the transaction costs and information costs, the more difficult it is for real estate to be liquidated. The very long useful life means that new buildings and existing properties compete, with the latter predominating. The high capital tie-up leads to rather few suppliers and buyers in the individual sub-markets, which favors oligopoly structures . Overall, the real estate market is a very imperfect market so that real estate prices are not uniform.

Offer structures

The real estate market can be divided into four sub-market categories with regard to its supply structures:

  • Submarkets according to the state of development : Agricultural land , land to be built , building land , developed land , newly built land, modernized old building , redevelopment land , demolition objects.
  • Sub-markets according to use categories : market for residential use, market for commercial use, market for objects of primary production (e.g. agricultural and forestry operations).
  • Sub- markets according to alternative contracts for acquiring ownership: real estate for sale, heritable building rights , real estate leasing objects , real estate usufruct , rent, lease.
  • Sub- markets according to spatial criteria : local markets (e.g. for shops in Ia business locations), regional markets (e.g. housing market), supra-regional markets (e.g. for investment properties in the target group real estate funds and real estate stock corporations ).

Many of these sub-markets are split up into further sub-markets. In the case of residential properties, the spectrum ranges from one-room apartments to 3 to 4-room apartments, terraced houses and detached single - family houses through to multi-family houses .

Divisibility

In the context of capital market theory, real estate is unique in terms of its divisibility . A property for own use is associated with relatively high investment costs. This lack of divisibility can be broken up through contractual arrangements. B. through the joint acquisition of a property in the form of a partnership or as joint debtor or the division into condominiums. However, access to a diversified portfolio is only possible through a special investment vehicle such as B. an investment fund possible.

Population structure

At the end of February 2006, an EU- supported Real Estate conference was held in Vienna . She noted that the aging of European societies is beginning to slow down the property markets there. For example, Italy's population will shrink by 20 to 25% by 2050, which is already reducing private housing provision somewhat. In addition, there is currently a lack of booming economic sectors , so that both the housing and the office market are stagnating.

In Germany and Austria , the population will shrink to a somewhat lesser extent, but the effects of stagnation could also start to have an effect here in a few years. Of Western Europe, only France is in a better position, while the negative population trend in the Eastern EU accession countries is only likely to be delayed by a few years than in Western Europe .

Slower immigration can have an impact on the real estate market: According to the Federal Statistical Office , the number of vacant apartments in Switzerland rose from 40,000 to 65,000 apartments in the years 2013 to 2017. As a result, rents also fell.

Sectors of the real estate market

The private real estate market is divided into multi-family houses , townhouses and single-family houses . A further division differentiates between social housing , standard housing and luxury apartments or between rental apartments and owner-occupied apartments according to the type of customer . In addition to the quality of the building, the residential area is decisive for pricing (rent or purchase price) . The commercial real estate market can be divided according to the type of use into commercial real estate for trade and services ( warehouses , shops , office buildings ), administration ( administrative buildings ) and industry ( industrial plants of all kinds). The pricing is based on the business situation and the property rating.

Some activities before the start of a construction project are also part of the real estate market, especially for the development of building plots : Official zoning and approval procedures, urban planning , nature and ensemble protection, planning and construction of supply and disposal lines , etc.

Real estate taxation

Income taxes

Real estate and its income enjoy a special tax status. In the taxation of private individuals, they are assigned their own type of income, in Germany that of income from renting and leasing . This income is particularly advantageous compared to, for example, commercial income, which is subject to trade tax in addition to income tax .

Traffic taxes

In the field of transport taxes Real estate is through the real estate transfer tax law made different as movable assets. A property transaction usually costs, depending on the federal state, up to 6.5% of the value of the consideration (as of 2019). When applying the real estate transfer tax, the transaction is exempt from sales tax .

Property taxes

Among the property taxes include property tax , which is very calculated differently. In addition, the state can impose other charges, such as for drainage .

Tax depreciation

Real estate investments have repeatedly received tax incentives in the past. Often this was done indirectly via tax depreciation options above the actual consumption of assets. The after-tax income could at times be shown significantly increased, which, when weighed up against other investment opportunities, favored the real estate. However, the lower yield in subsequent periods and price increases by the sellers cannot be overlooked. Special tax depreciations therefore often led to market dislocations (example: Development Area Act in the new federal states).

Real estate-related processes and professions

In many countries, special legislation has developed for real estate management and the housing market , which has also given rise to specific administrative procedures and professions , in particular:

See also

literature

  • Real estate market. Weekly supplement of the FAZ
  • Steffen Metzner: Real estate economic methods for decision support and planning. Monsenstein and Vannerdat, Münster 2013, ISBN 978-3-95645-027-3 .
  • Nico B. Rottke, Matthias Thomas (Ed.): Real estate economics. Immobilien-Manager-Verlag, Cologne 2011, ISBN 978-3-89984-208-1 .
  • Egon Murfeld (Hrsg.): Special business administration of the real estate industry. 7th edition. Haufe, Freiburg / Munich 2014, ISBN 978-3-648-04507-7 .

Web links

Wiktionary: Real estate market  - explanations of meanings, word origins, synonyms, translations

Individual evidence

  1. ^ Society for Real Estate Research (Ed.), Economic Factor Real Estate 2017 , Real Estate Market Report Germany 2017 , p. 5
  2. ^ Society for Real Estate Research (Ed.), Economic Factor Real Estate 2017 , Real Estate Market Report Germany 2017 , p. 2
  3. ↑ Egon Görgens / Karlheinz Ruckriegel / Franz Seitz, European Monetary Policy: Theory - Empiricism - Practice , 2008, p. 460
  4. ↑ Kathrin Köhling, Present value-oriented fair value calculation for investment properties in IFRS accounting , 2011, p. 10
  5. ↑ Nico B. Rottke / Matthias Thomas (eds.), Immobilienwirtschaftslehre - Management , 2017, p. 121
  6. ↑ Kathrin Köhling, Present value-oriented fair value determination for investment properties in IFRS accounting , 2011, p. 9
  7. ^ Society for Real Estate Research (Ed.), Economic Factor Real Estate 2017 , Real Estate Market Report Germany 2017 , p. 29
  8. ↑ Ronald Weberndorfer, Effects of Natural Hazards on Real Estate and Land Prices , 2008, p. 60
  9. ↑ Kathrin Köhling, Present value-oriented fair value calculation for investment properties in IFRS accounting , 2011, p. 8
  10. ↑ Kathrin Köhling, Present value-oriented fair value determination for investment properties in IFRS accounting , 2011, p. 7
  11. ↑ Hans-Hermann Francke / Heinz Rehkugler (eds.), Real Estate Markets and Real Estate Valuation , 2012, p. 406
  12. ↑ Kathrin Köhling, Present value-oriented fair value determination for investment properties in IFRS accounting , 2011, p. 7
  13. ↑ Nico B. Rottke / Matthias Thomas (eds.), Immobilienwirtschaftslehre - Management , 2017, p. 121
  14. ↑ See also FAZ of February 24, 2006, p. 47 f.
  15. ↑ 65,000 apartments are empty. Retrieved November 7, 2018 .
  16. ↑ Stefan Michel, Marketing Concept , 2009, p. 21