BASIC PRINCIPLES AND ECONOMIC IMPORTANCE OF REAL ESTATE INVESTMENTS

Abstract

This analysis considers real estate as a fundamental asset class and defines investment property through its function to generate rental income, positioning it in the conditions of alternative investment markets. The critical macroeconomic importance of real estate is highlighted, illustrated through three main roles: factor of production, corporate balance sheet asset, and  the report explores the integration of financial techniques such as securitization and asset pooling, which increase the liquidity of property investments. An in-depth understanding of the process is based on the distinction of three important aspects: Capital value and  income assessment; Ownership, which imposes significant legal and operational responsibilities and Economic value derived from the fixed supply of land and the concept of economic rent