Real Estate Development
Residual Theory of Land Value
The demand for construction land is derived demand, not direct demand. Land serves as a production factor—it is not needed for final consumption but rather for hosting buildings […]
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Category: [:en]Real Estate Development[:]
Real Estate Development
Pattern of City Size – Zipf’s Law
Rank-Size Rule (also known as Zipf’s Law) states that a city’s population size tends to be proportional to the largest city’s population divided by the city’s rank (its […]
Real Estate Development
The DiPasquale-Wheaton 4-Quadrant Diagram
The Four Quadrants Diagram illustrates the system of forces in the real estate sector. The interaction between the development sector, the capital market, and the space market creates […]
Real Estate Development
Best Use and Option Analysis of Land Value
To determine the intrinsic value of development land, the Highest and Best Use Analysis technique is employed. Naturally, the intrinsic value of development land is derived from the […]
Real Estate Development
Deliver Profitability in RE Development
How to Make a Construction-Development Project Profitable?
Real Estate Development
Planning Fallacy
Delays in construction projects and massive budget overruns appear to be not just a Georgian problem. Daniel Kahneman, in his book Thinking, Fast and Slow, refers to this […]
Real Estate Development
What Creates a Housing Bubble?
In the construction-development sector, bubble formation can be stimulated by various factors, but I want to highlight two key systemic factors here: 1. The bullwhip effect, and 2. […]