A category of real estate (residential, office, retail, industrial, hospitality, etc.) with distinct demand drivers.
Related terms
- Capital market
The market for the ownership of real estate as an investment, driven by interest rates and risk appetite.
- Freehold
Outright ownership of land and buildings for an indefinite period.
- Highest and best use (HBU)
The legally permissible, physically possible, financially feasible, and maximally productive use of a site.
- Illiquidity
The difficulty of converting real estate to cash quickly without a price concession.
- Leasehold
The right to use a property for a fixed term under a lease, after which it reverts to the freeholder.
- Liquidity
How quickly an asset can be sold near its fair value without a price concession; real estate is inherently illiquid, and thin, opaque emerging markets make it…
- Location premium
The additional value a property commands due to its position and access to amenities.
- Owner-occupier
A party that buys or leases property to use it themselves rather than as an investment.