Real Estate Market Participants
A feature of the real estate market is the presence of a significant number of entities directly or indirectly involved in its functioning. Nevertheless, two principal groups of participants can be distinguished - professional participants and state, supervisory, regulatory bodies.
The main subjects of the real estate market should include market participants entering into relations with each other regarding the ownership, use and disposal of real estate and directly affecting the development of the property.
Thus, the following market participants can be attributed to the main subjects of the real estate market.⠀
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1. Investors - individuals or legal entities who invest free cash in a development project or in an existing property for the purpose of further development.
2. Owners of real estate - the state, municipalities, an individual or legal entity that has the right of ownership of a real estate, acting as the owner and manager of real estate. The owner can transfer his authority to own, use and dispose of the property to another person, use the property as a place for the production of goods or services, or for permanent or temporary residence of both himself and third parties.
3. Users of real estate - persons using the property as a place for the production of goods or services, for permanent or temporary residence. Users can be tenants or internal divisions of the owner of real estate, as well as third parties.⠀
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4. Management companies - organizations whose main activity is the professional management of real estate owned by third parties, sometimes their own, if the property is included in the investment portfolio of the management company. Management companies represent the interests of the investor, owner or user of real estate in the real estate market, as well as their own interests.
At the same time, it should be taken into account that sometimes the owners of real estate themselves can be a management company or have a special unit dealing with real estate management.
In addition, there may be cases when the same market participant is simultaneously acting as several parties of the real estate market. For example, an investor company involved in the construction of an office building subsequently became the owner of this property and manages building by own employees.
Other parties of the real estate market include market participants that indirectly affect the development of the real estate market, but have an impact on the goals and actions of the main parties of the real estate market.