Can't these kinds of buildings change the dynamic in real-estate ?
For example , in israel, where the land is usually bought from the state, sometimes groups of private people gather together to build an apartment complex and save a bit of money.But that's a long(and maybe risky) project, so people rarely do so.
But let's say it was a short process - a group gathers, gives the funds , and in month they enter their apartments. I could see this becoming more common, because you can have decent savings .
And assuming that happens - now it's people buying their own land(and build higher structures on it), won't that change the pricing dynamic on land, and the political pressures on the state which sells such land ?
Real-estate markets are markets. They seek equilibrium. When a building is delivered, supply increases, demand goes down and a new equilibrium is established. Groups of people who would build apartments have the option of moving in to existing apartments without the impedance of land entitlement, large project financing, or construction timelines. Speed to market presents less risk to developers except when everyone else can get to market just as fast. Then the risk that someone else delivers and the market becomes over-supplied comes back.
For example , in israel, where the land is usually bought from the state, sometimes groups of private people gather together to build an apartment complex and save a bit of money.But that's a long(and maybe risky) project, so people rarely do so.
But let's say it was a short process - a group gathers, gives the funds , and in month they enter their apartments. I could see this becoming more common, because you can have decent savings .
And assuming that happens - now it's people buying their own land(and build higher structures on it), won't that change the pricing dynamic on land, and the political pressures on the state which sells such land ?