The real estate market

Did you know ? In the real estate market, prices are set freely between buyers and sellers and tend to fluctuate over time. depending on external factors (economic or political situation in particular). The evolution of prices has a trend growth very close to that of the average income per household.

Prices also depend on “irrational” variables that are difficult to measure such as the weight of beliefs, the possibilities of enthusiasm, etc. In France, rental prices are measured by an index provided by INSEE, the reference rent index.

In addition to the economic effects, the specific characteristics of a property have an influence on its price. These can be intrinsic to the property (ease of access and layout, comfort, insulation, exposure, aesthetics, dilapidation, loads and constraints, well occupied or freely habitable), sentimental elements (family goods).

Phenomena of rarity may possibly be created. The unit of comparison for real estate prices is usually the price per square meter (or per square foot, in some English-speaking countries). Saxons).
For income properties, multiples of income and other related measures (discount rates) are used.