The interaction between Residential and non-residential real estate markets in Transition: On the Geography of Real Estate Development
Type of research
Supervisor(s)Prof.dr. J. Van Dijk
Booms and busts in real estate markets typically lead recessions indicating the strong relationship with the economy (cf. Muellbauer and Murphy, 1997). This is what one observes nowadays when reading the newspapers: a decline in demand for property resulting in a substantial decline in transactions and a large and sudden drop in real estate value. The impact of a shock in real estate markets on society at large is substantial (see Case, Shiller and Quigley, 2001; Muellbauer, 2007). Real estate property includes both residential real estate and non-residential real estate (viz. offices, retail, industrial and public real estate).The issue arises as to how residential and non-residential real estate markets are interrelated over time and across space. The literature on this is rather thin. Issues on real estate development are typically researched in isolation not considering the interplay between the various residential/non-residential real estate markets. The literature in planning and economic geography suggests a clear interrelation between the various real estate markets. In planning these issues relate to the job-housing balance (Cervero, 1996), and in economic geography to whether jobs follow people or people follow jobs (cf. Hoogstra et al., 2009). These propositions indicate that real estate development of residential and non-residential property is intimately related. Do real estate development cycles in residential real estate lead or lag those in non-residential real estate? How does real estate development shape tomorrow’s regional economy? It is the aim of this research to shed more light on these issues.
|Last modified:||03 March 2014 11.37 a.m.|