The American Real Estate and Urban Economics Association (AREUEA) is an organization of scholars, researchers, and practitioners dedicated to the economic analysis of real estate-related problems. AREUEA publishes the Real Estate Economics quarterly journal.
In real estate appraisal, the Principle of Balance asserts that there is an optimal mix of inputs that, when combined with land, will result in the highest land value. Key inputs include labor, capital, and entrepreneurship.
The principle of contribution states that the value of a property component is determined by the value it adds to the entire property.
Demand refers to the quantity of goods or services that consumers are willing and able to purchase at a given price. It plays a crucial role in the real estate market as it influences prices and availability.
Economic rent refers to the excess payment made to a factor of production over and above the amount needed to bring that factor into production. This term is often used in economics and appraisal contexts.
Founded in 1994, the European Real Estate Society (ERES) fosters a structured and permanent network that facilitates collaboration between real estate academics and professionals throughout Europe.
The Improvement Ratio measures the relative value of improvements on a property compared to its unimproved value, providing insight into the investment in enhancements versus the land value itself.
Panic selling refers to the sudden, widespread urgency to dump properties on the market, typically incited by fear of a rapid decline in property values, often due to perceived detrimental changes in neighborhood conditions.
The principle of substitution posits that the value of a property is directly influenced by the availability and prices of comparable properties, assuming that a typical buyer finds similar properties interchangeable.
Remaining economic life refers to the likely future period during which an asset is expected to generate a positive contribution to its value. It measures how long an asset will continue to be economically useful, considering various factors like wear, functional obsolescence, and market conditions.
The fundamental economic concept of Supply and Demand dictates that market prices are determined at an equilibrium point where the quantity supplied matches the quantity demanded. In real estate, this principle is complicated by the slow adjustment of supply due to lengthy planning and development periods.
