ABSTRACT
The supply of investable buildings is at the heart of real estate markets as it affects their nature and scale. This chapter examines the different facets of the supply process. It deals with a macro-economic perspective that provides an overview of the short and long-term factors driving the supply of real estate and highlights the role of net additions to the supply of buildings. The chapter explores two alternative forms of finance – raising capital on a stock market and equity sharing partnership schemes between property developers and other parties, notably non-banking financial institutions. It also explores development finance to expand or adapt the real estate stock. The chapter considers the role and attitudes of investors toward segments of real estate as long-term influences on the nature of the stock. The expansion of office supply, supported by the growth in services and demand for office space, underpinned its rise in attractiveness as an investment class.
