The Impact of Demand-supply Relationship and the Urban Positioning on Real Estate

Abstract

The Global real estate market is about supply, demand, and the role shape of a city. The economy on earth depends greatly on the property market. Old economic models that only look at supply and demand are not enough to explain these differences anymore. This paper claims that a city’s role and strategy in the world are the most important variables for its long-term property values and development. Each city has their unique zoning and governance but they all obey the general ideal model. though the iteration of theory will affect the actual data. In long-term, the situation may tend to be similar beacuse population control will be the main topic in the next decades. By researching cities including London, Berlin, Dubai, and Detroit’s research shows that a successful strategy attracts talented persons and investment, which produces strong demand and high prices. On the other hand, cities without a defined plan encounter decreasing demand and losing value. The conclusion is that understanding a city’s global strategy is as important as studying basic supply and demand