Real Estate and Property Market (In Philippine Setting).
REM 13. REAL ESTATE DEFINITION. -the national stock of buildings, the land on which they are built, and all vacant land. These buildings are used either by firms, government, nonprofit organizations, and so on, as workplaces, or by households as places of residence. When defined this way, the value of all real estate makes up the largest single component of national wealth. Distinction between real estate as space and real estate as an asset is most clear when buildings are not occupied by their owners..
WHAT IS REAL ESTATE?. Real estate refers to land along with any buildings and natural resources attached to it—like water, crops, or minerals. Unlike personal property, real estate is immovable and includes both physical structures and legal interests in land Wikipedia. Philippine Example: Consider a family-owned lot in Quezon City where a house stands and a mango tree grows—this combination constitutes real estate. Scenario: An investor purchases a beachfront lot in Palawan; it includes the land, the bungalow on it, and the right to lease it to tourists. This bundle—land, improvements, and usage interest—exemplifies real estate..
2. HOW BIG IS THE REAL ESTATE SECTOR IN THE PHILIPPINES? (OBJECTIVE 2).
3. MARKET FOR USE VS. MARKET FOR ASSETS (OBJECTIVE 3).
PHILIPPINE EXAMPLES & RELEVANCE MIXED-USE DEVELOPMENT:.
SUMMARY TABLE. Learning Objective What You'll Know Philippine Example 1. Define Real Estate Land + improvements + interest in property A family lot in Quezon City with a house and mango tree 2. Sector's Size Market value, economic impact 2024 market ≈ USD 90.5B; gross value added ≈ PHP 536B; strong permit growth 3. Use vs. Asset Market Distinguish usage vs investment purposes Renting in Makati (use) vs. OFW buying condo for rent (asset).
🔑 MNEMONIC 1: R.E.A.L. – WHAT IS REAL ESTATE? R – RIGHTS AND LEGAL INTERESTS E – EVERYTHING ATTACHED TO LAND A – ASSETS THAT ARE IMMOVABLE L – LAND AND STRUCTURES 📝 HELPS DEFINE THE CORE COMPONENTS OF REAL ESTATE..
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