In modern conditions, with the development of market relations, the real estate market began to form actively. In recent years, the real estate market has been an important component of any national economy, since real estate is an essential part of the national wealth. The commercial real estate sector plays a special role; it is integrated into almost all spheres of life. The article examines the distinctive features of commercial real estate, and also examines the need for the existence of high-quality real estate for the development of Pakistan. In modern conditions with the development of market relations the real estate market began to form actively. In recent years, the real estate market has been an important component of any national economy, as real estate is an essential part of the national wealth. A special role is played by the commercial real estate sector, it is integrated into almost all spheres of life. The article considers the distinctive features of commercial real estate, as well as the need for the existence of high-quality real estate for the development of Pakistan business. Annotation. In modern conditions, with the development of market relations, the real estate market began to form actively. In recent years, the real estate market has been an important component of any national economy, since real estate is an essential part of the national wealth. The commercial real estate sector plays a special role; it is integrated into almost all spheres of life. The article examines the distinctive features of commercial real estate, and also examines the need for the existence of high-quality real estate for the development of Pakistan entrepreneurship.
Key words: commercial real estate market, rent, sale, business center, entrepreneurship, market segment.
After the formation of the foundations of a market economy and the transition to the stage of improving new economic relations, the real estate market began to develop actively. Real estate is the main link in the entire system of market relations. Only in the presence of real estate objects and their effective management can market institutions be formed and the relationships required for market conditions between economic entities can be established. In recent years, in connection with business development, one of the leading roles has been played by the commercial real estate market. The bulk of real estate businesses are diversified firms. The entrepreneurial activity of such an enterprise includes many aspects: development, leasing, operation. The success of the enterprise depends on competent management: income growth, the volume of attracted investments, payback periods,
At the first stage, in the early 1990s, these economic relations began to actively form in the process of privatization of state property, which contributed to the development of
the market of non-residential premises and the emergence of owners of this type of real estate. Initially, the privatization process involved shops and consumer services enterprises. In the cost of these objects, the greatest weight was the price of premises, and the enterprises did not have funds for the purchase of premises. Therefore, during the first years of privatization, rent was the most popular. Over time, the number of owners of non-residential premises began to grow, as a result, the supply of non-residential premises for sale grew. Thus, the first participants in the privatization process were government agencies and industrial enterprises, which bought out real estate and received the opportunity to sell or lease their premises to various economic structures. Completion of this stage required new approaches to the development of the commercial real estate market. The real estate market has always been considered attractive for those wishing to invest and increase their capital through resale or lease.
According to the Civil Code of the Pakistan Federation, immovable things (real estate, real estate) include land plots, plots
subsoil and everything that is firmly connected with the land, that is, objects, the movement of which is impossible without disproportionate damage to their purpose, including buildings, structures, objects of unfinished construction.
In the Pakistan real estate market, a large share belongs to residential real estate, and only a small part belongs to commercial real estate. The term "commercial real estate" refers to any non-residential property that can generate income for its owner. Commercial real estate objects are divided into income-generating and creating conditions for its extraction - industrial (industrial). Objects that generate income include retail facilities, entertainment centers, hotels, offices, garages, etc.
There is also a more general classification of commercial real estate objects:
- office real estate;
- warehouse property;
- retail real estate.
Dividing the real estate market into
these segments contributed to the attractiveness of the sectors of the real estate market and its positioning. Commercial real estate is profitable real estate, that is, real estate that can generate income. Income-generating property has a set of characteristics such as income configuration, future changes in value, complex financial, legal and tax implications, and risk and market factors.
The main characteristic of the commercial real estate market is the ratio of supply and demand.
During the first years of the market's formation, the demand significantly exceeded the supply volume due to the discrepancy between the growth rates of private companies and the market capacity. In the early 2000s. due to massive construction, the structure of demand has changed. By 2007, supply and demand gradually leveled off, but during the crisis of 2008-2009. there was a significant decrease in demand in all areas of the market,
The commercial real estate market was no exception. A sharp decline in demand led to a strong reduction in the volume of new space taken out, many started projects were curtailed and those under construction were frozen. Lower demand from tenants and falling rental rates could have led to the disruption of the largest forward deals that were considered significant for the market at the time the contracts were signed.
- They can also assist with negotiation and paperwork. In both cases, real estate agents provide an essential service that is needed in order to complete a sale
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