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Economics - is the study of shortages and of the allocation and use of scare resources to

overcome those shortages as far as possible (Lobley, 1989).

Studies how individuals and societies seek to satisfy needs and wants through incentives,
choices, and allocation of scarce resources
Economic divde by 2..
- Macroeco
o Deal with the large aspects of nation ..
- Micro eco
o Deal with personal decision - consumer ( household)- entrepreneurs (firms)

1. Natural Resources raw materials found in nature that are used to produce goods, i.e. land,
oil, water, air, etc.
2. Human Resources peoples knowledge, efforts, and skills used in their work, i.e. doctors, town
planners, etc.
3. Capital Resources used to produce goods and services, i.e. buildings, materials, technology,
and equipment.
4. Entrepreneurial Resources - recognise the need for new goods or services

Demand- The quantity demanded of a good or services is the amount that consumers plan to buy in a
given period of time.

Supply - The quantity supplied of a good or services is the amount that producers plan to sell in a given
period of time.
- Factors influencing the locational choice of houses/dwelling :-
1. Employment Opportunities
2. Proximity to Work
3. Affordability (income of the family)
4. Proximity to Leisure Activities
5. Real Estate Value
6. Location Choices of Firms
Location Choices of Firms
- Types of industries:
(a) agriculture and mining,
(b) manufacturing and construction
(c)services and transport,
(d) modern industry (communications, advertising, offering expertise, consulting, etc.).
The Meaning of the Real Property Market
- The real property market is simply the arrangement by which buyers and sellers of virgin
land, agricultural estates, industrial buildings, offices, shops, and houses are brought together
to determine a price at which the particular property can be exchanged.
The Types of Properties
Dwellings standard new homes, in developments and elsewhere; not new but not yet
obsolete; obsolete houses; special types such as town houses.
Vacant land (agricultural, residential).
Commercial properties stores; shops; office; others.
Industrial properties factories; warehouse; logistic buildings.
Agricultural/forestry properties.
Natural resource property mining (e.g. coal; gold; oil); quarries; others.

Factors that increases the property markets includes :-
1. Demographics are the data that describes the composition of a population, such as age, race,
gender, income, migration patterns and population growth.
2. Interest rates also have a major impact on the real estate markets. Changes in interest rates can
greatly influence a person's ability to purchase a residential property.
3. The Economy- Another key factor that affects the value of real estate is the overall health of the
4. Government Policies/Subsidies
Legislation is also another factor that can have a sizable impact on property demand and prices.