Real estate economics Assignment Example | Topics and Well Written Essays - 2500 words

Real estate economics - Assignment Example This layout perceives a city as a pattern of settlement, which can be described using concentric regions. In this case, the epicentre represents the Central Business District (CBD). Here, any economic activity is highly regarded since the market is accessible to all. In order to understand the monocentric models, four primary factors are considered. They include; the fact that, the CBD acts as the core area of activities, where transport lines are connected to (Lin, 2014). Secondly, the people living in the CBD live in other cities, which surround the CBD, thus have to commute on a daily basis to the CBD. The third characteristic is the intercity transportation, where the goods obtained from the CBD are ferried to other cities, through common means of transport, such as rail and roads. Since the people here are in constant business, they exchange ideas and participate in a given trend of activities. As a result, they develop a culture, which further stratifies the layout of the monoc entric city. Here, the forms of settlement are stratified and distinctively isolated to a given economic class. The land rates are expected to be highest in the CBD and reduce outwards. Here, the main occupants of the CBD include businesses and offices. These groups of tenants are willing to pay high rent, since they seek to position themselves strategically, in order to access the customers’ strategic locations (Hanushek, 2014). In this research, the area selected is Manchester city, with all the cities around it. They include Oldham, Rockdale, Salford, Stockport, Tameside, Trafford and Wigan. The choice was based on the economic significance of the cities. In addition, the density of settlements and the accessibility of the areas. Then, the researcher opted to concentrate on the rateable values and area of the rented space (Madariaga, 2014). The combination of the two parameters