The way land rents and prices decline with distance from a city's centre or key node; it explains why Cairo's New Administrative Capital or Riyadh's core command premiums that fade outward.
Related terms
- Central place theory
A model explaining the size and spacing of settlements by the market areas needed to support goods and services; useful for retail catchment and site selection…
- Consumer price index (CPI)
A measure of inflation tracking the price of a basket of consumer goods; leases and construction contracts are often indexed to CPI, and it drives real vs nomi…
- Currency peg
A fixed exchange rate holding a local currency against a reference currency, usually the US dollar; the GCC currencies are pegged, which gives Gulf real estate…
- Demand forecasting
Projecting future need for space from demographic and economic drivers.
- Demographic dividend
The growth boost an economy gets when a large share of its population is of working age; Egypt, Nigeria, and much of Sub-Saharan Africa are riding this, underp…
- Density bonus
Extra buildable floor area a developer is granted in exchange for delivering a public benefit such as affordable units or open space; a planning lever increasi…
- Devaluation
A deliberate reduction in a currency's official value; Egypt's repeated pound devaluations since 2016 repriced construction inputs overnight and shifted buyers…
- Economic base
The export-oriented industries that drive a city income and, in turn, its real estate demand.