week 6: property markets and real estate

Question 1

user market

Answer 1

• supply demand
• how much stock and the price
• if the demands comes up, the price goes up

Question 2

investment market

Answer 2

price willing to pay
yield on investment

Question 3

cap(italization) rate (current yield per euro investment)

Answer 3

current annual net income (current yield of investment)/property price (amount of investment)

Question 4

construction market

Answer 4

relation between the price (investment value) and building production (construction)
construction when investment value is higher than cost price

Question 5

stock adjustment market

Answer 5

there is a relation between construction and stock piling
change in stock equals construction minus demolition / transformation

Question 6

design-bid-build contract

Answer 6

The main contractor constructs the building according to designs and specifications prepared by the developer’s professional team.

Question 7

the design and build contract

Answer 7

The contractor is responsible for both construction and design/specification, ensuring the building meets the developer’s requirements.

Question 8

management contracting

Answer 8

The professional team handles design and specification, while the management contractor coordinates and supervises specialized trade contractors on behalf of the developer.

Question 9

idea behind Public private partnerships

Answer 9

private companies are more efficient and better managed than public bodies