Comprehensive Report: Evolution of the Real Estate Market in the UK

This report provides a comprehensive overview of the evolution of the real estate market in the UK. It begins by defining real estate and its significance in national growth, emphasizing its role in capital flow, living standards, and infrastructure. The report outlines the research aim, objectives, and questions, followed by a literature review that details the components of the real estate market, including residential, commercial, and industrial segments. It then explores the changes in the UK market, particularly between 1996 and 2007, and the subsequent recovery after the 2008 financial crisis, highlighting factors such as population growth, interest rates, and construction activities. The report also examines how real estate supports national development through infrastructure, housing, business spaces, and employment opportunities. The methodology section describes the qualitative research approach and inductive approach used, along with secondary data sources. The discussion section summarizes the findings, and limitations such as time constraints and reliance on secondary data are acknowledged. The report concludes by emphasizing the positive impact of real estate evolution on the UK's economic and social conditions.

Evolution of the real
estate market
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CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Research aim................................................................................................................................3
Research Objective......................................................................................................................3
Research questions.......................................................................................................................3
Significance of study...................................................................................................................3
LITERATURE REVIEW................................................................................................................4
the components that cover under the real estate market..............................................................4
The changes that evolution of real estate bring within market of UK.........................................4
the ways in which real estate help within the development of the country like UK...................5
METHODOLOGY..........................................................................................................................5
DISCUSSION..................................................................................................................................6
LIMITATION..................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
The real estate refers to the property, building, land, air right above the land and having
the underground rights below the land. It plays a significant role in the growth and development
of country by maintaining regular flow of capital in the country, improving living standard of
people by providing them job opportunities and places to live, support in improving the
infrastructure facilities within country etc. Therefore, it is believed that real estate constitutes a
major part of a country and also support in its growth and development in term of social,
financial and economic perspective (Dawley and et. al., 2014). In order to further gather
understanding about the role of real estate this study is conducted which is based on the
evolution of real estate within industry of UK and growth or development that country
experience through its evolution. The Real estate industry is UK represent approx. 21% of the
total wealth along with the market value of around £1,662bn and it contribute up to £101.2bn to
the economy of UK with 7% of GDP. Hence, it has a vast contribution to the development of
country.
Research aim
To investigate about the role of evolution of real estate market in growth and development
of country.
Research Objective
 To determine the components that cover under the real estate market
 To study about the changes that evolution of real estate bring within market of UK
 To ascertain the ways in which real estate help within the development of the country like
UK
Research questions
 What are the major components that covered under the real estate market?
 Explain about the changes that evolution of real estate bring within market of UK?
 Describe about certain ways through which the real estate can help within the
development of the country?
Significance of study
This study holds importance as it provide a detail about the evolution of Real Estate
industry within UK to determine the ways through which it get development and ways in which
operates that support the estate dealer in tehri business. Despite of this it will also support in
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analysing the ways in which the real estate evolution helps within eth growth and development
of the country and manner in which it contribute toward the social as well as economic factor of
the country.
LITERATURE REVIEW
the components that cover under the real estate market
As per the information provided by the Depersio. G., 2020, the real estate constitutes an
essential part of one’s life as people work, live, learn and spend their leisure time within a
building. There are several segments or components that cover under a real estate such as,
Residential real estate: - This segment within the real estate mainly focuses over buying
as well as selling of properties that are used by the people for residential purpose such as home.
These residential real estates are mainly comprising of single family homes, planned unit
development, apartment and many more.
Commercial real estate: It involve the segment of real estate which si used for the
business purpose such as retail stores, office space, malls, hotels and several other kind of
buildings that re used for the business purpose. The commercial real state mainly involved those
spaces that are used for executing business operations or the places where there is a direct
interaction between employee and customers.
Industrial real estate: - This segment is consisting of properties that are used for
manufacturing as well as production and mainly includes plants, warehouses and factories. It
mainly includes organisations that deal in development of real estate for an organisation involve
in production or manufacturing of goods and services by setting up building where their
operations can be executed effectively.
The changes that evolution of real estate bring within market of UK
According to the Delmendo. L.C., 2019, the evolution of real estate brings uip several
ups and downs within the UK industry which constitute toward its overall development. The
main years for UK where the real estate undergoes several changes is consider in between 1996
to 2007 where the price in London get rose by 289.1%, 393.2% in Northern Ireland and so on.
Additionally, in year 2007 the interest rate gets increased and landing conditions get much more
tighten. But in late 2008 the house price starts to fall because of global financial meltdown this in
turn bring up a huge down turn to the industry. But later on in year 2013 the real estate market
started recovering that get rises by 22.8% from year 2013-2018. After this London was consider
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top the biggest price growth of around 35.5%. this growth has been filled by the four factors i.e.
strong immigration and population growth, lower interest rate with larger expansion of money
supply, construction activities remain weak and city of London continue to boom.
the ways in which real estate help within the development of the country like UK
Minguzzi. G., 2014, state that every kind of general election loom recurring theme,
closure are getting emerge across as political spectrum such as sustainable growth, housing and
infrastructure. From this it has been found that infrastructure development and housing
construction are crucial for the development of a county and as the population of London is
growing it require homes, modern infrastructure to deal with its mobile and diverse workforce
and financial stability for continuous growth. These all are the need that cover with the evolution
of real Estate in country as it enables economic activity by provide space for businesses to
operate their functions effectively and providing appropriate infrastructure. Despite of this
innovative and modern building maintain reputation of country in interactional trade and its
infrastructure calls for foreign investment. Other than this it help in improving living standard by
providing housing facilities and other infrastructure in order to covered all basic needs require
for a healthy stay. Additionally, it also contributes toward increasing the employment
opportunity for the people
METHODOLOGY
Research methodology refers to that part of a researcher that put emphases toward
presenting the information about several methods, approaches and tools used for performing
investigation by the researcher. This support in collection, evaluating, analysing, arranging and
interpreting the information so that appropriate conclusion can be extract out of the data
collected through investigation (Kumar, 2019). The methodologies used by the investigator in
study is mentioned below:
Type of investigation: - There are usually two kind of investigation method used
investigator to perform a study such as qualitative and quantitative. In order to conduct this study
the qualitative mean of investigation is chosen by the researcher as it support in presenting the
information in theoretical manner by supporting information with some theoretical concepts and
theories to make it more explanatory (Omland and Thapa, 2017). The main advantage of using
qualitative investigation is that it provide detailed and in depth understanding about the topic, but
on other hand it has a drawback that it is a time-consuming method.
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Research approach: - The approach selected within an investigation is depend over the
method of investigation selected by the researcher. There are two approaches used within an
invention i.e. inductive or deductive. From these two approaches the investigator is using
inductive approach which is best suitable for qualitative investigation. This support in evaluating
the qualitative data and provide the appropriate conclusion in support with the research aims and
objectives (Scotland, 2012). The main benefit of implementing inductive approach is that it helps
in analysing the larger among of data as per theories and concept basis and conclude it un more
meaningful manner. But the disadvantage is that it sometimes leads to false conclusion as it
doesn’t involve numerical data that conclude with more accuracy.
Sources of data collection: - The sources of data collection are the medium through
which information for a particular research is collected i.e. either primary sources or secondary
source. To execute current study secondary sources of data collection will be used and for this
study the online sources will be used where data is collected through books, journals, articles etc.
The secondary source will collect already presented information that get further analysed in
order to get deep understanding about a particular topic (Mackey and Gass, 2015). The benefit of
using secondary sources is that it support in getting the reliable data. But disadvantage of study is
that it involve previously studied data which lack in presenting the current situation.
DISCUSSION
From the above performed investigation it has been found that real estate constitutes a major
part of country’s development as it focuses toward improving its infrastructure and provisioning
place to live, perform other activities like business, education, work etc. The real estate industry
involve three major segments such as residential real estate which deal in building and selling
home, commercial real estate work toward developing and selling buildings for business and
other commercial purpose, and industrial real estate work toward developing building like
factory for manufacturing purpose (Marcato and Nanda, 2016). All these supports a lot in
improving livening standard of people and enhancing the infrastructure facility within a country.
The real estate evolution bring several changes that contribute a lot in growth of the industry and
support in economic development of country. The growth of real estate begins from year 2013
where the market that get affected due to economic recession started recovering and real estate
industry started earning high by increasing the price (Haynes, Nunnington and Eccles, 2017).
This growth and development of industry was a result of 4 pillars such as immigrant population,
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low interest rate, expansion of money supply and London growth. Hence it can be said that in
structure support a lot in growth and development of the country by working toward improving
the social situation with the help of developing infrastructure, providing proper housing and
business facilities (Cabras and Bamforth, 2016). Other than this it also contributes by developing
employment opportunity, attracting foreign investment by developing innovative buildings and
infrastructure so that foreign business can operate and support in economic growth
LIMITATION
The main limitation within study is about duration i.e. the time provided for this study
was very much limited which restrict the researcher to perform in depth study. due to the time
limitation the research is conducted using secondary research which is another limitation as it
involve past data and changes that anticipated current within the real estate industry of the UK
can’t be involved in study. This not only restrict the information of research to some old year but
there also remains a chance of inaccuracy as some details might not be valid in present time
period. Despite of all this the literature review was also very much limited due to this topic
which is not much studied earlier and few information about the evolution is present in market.
CONCLUSION
From the above performed research it can be concluded that the evolution of real estate
proves to be very much helpful for the country in term of its growth and development. It plays a
major role in improving the economic as well as social conduction of UK. This is so became the
real Estate industry was mainly established with an aim to improve the infrastructure farcicalities
by developing the buildings and other related constructions in order to provide people with a
country where they can live their life bitterly while availing all the facilities and perform their
work, business, education, manufacturing related practices that in turn help in improving the
economic condition of country. This improvement over infrastructure further support UK to call
investors and other business angles to the country by getting attracted toward its infrastructure
for setting up their business. Theses all co-ordinately support within the growth and development
of country by improving the lives of people and getting regular flow of fund in country.
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REFERENCES
Books and Journals
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge
Omland, H.O. and Thapa, D., 2017, May. Methodological approach for identifying mechanisms
in ICT4D: A critical realism perspective. In International Conference on Social
Implications of Computers in Developing Countries (pp. 182-193). Springer, Cham.
Scotland, J., 2012. Exploring the philosophical underpinnings of research: Relating ontology and
epistemology to the methodology and methods of the scientific, interpretive, and critical
research paradigms. English language teaching. 5(9). pp.9-16.
Dawley, S. and et. al., 2014. Continuity and evolution in an old industrial region: the labour
market dynamics of the rise and fall of Northern Rock. Regional Studies, 48(1), pp.154-
172.
Marcato, G. and Nanda, A., 2016. Information content and forecasting ability of sentiment
indicators: case of real estate market. Journal of Real Estate Research, 38(2), pp.165-
203.
Haynes, B., Nunnington, N. and Eccles, T., 2017. Corporate real estate asset management:
strategy and implementation. Taylor & Francis.
Cabras, I. and Bamforth, C., 2016. From reviving tradition to fostering innovation and changing
marketing: The evolution of micro-brewing in the UK and US, 1980–2012. Business
History, 58(5), pp.625-646.
Online
Delmendo. L.C., 2019. UK’s housing market remains subdued, amidst uncertainty surrounding
Brexit < https://www.globalpropertyguide.com/Europe/United-Kingdom/Price-
History>.
Minguzzi. G., 2014. The role of real estate in the economy < https://www.bpf.org.uk/media-
listing/blog-posts/role-real-estate-economy>.
Depersio. G., 2020. What Are the Main Segments of the Real Estate Sector? <
https://www.investopedia.com/ask/answers/052715/what-are-main-segments-real-
estate-sector.asp>
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