It seemed to me an interesting and obligatory question since the first thing that comes to mind is that the properties will be worthless.

There are basic principles of valuation that govern the behavior of securities, and one of them is that of supply and demand, which indicates that it is the market that defines them.

A market is an environment in the trade of goods and services between buyers and sellers, through a pricing mechanism.

The market value is the estimated value at which an asset is to be exchanged, at the valuation date, between a buyer and a seller in a mutually independent transaction, after adequate commercialization in which the parties will act upon it with knowledge, prudence and without compulsion.

Each party, will, therefore, respond to supply and demand and other pricing relationships, as well as to their understanding of the utility of the goods or services and individual needs and desires. To simplify, the buyer, at that moment, does not require a capital, since he owns it and has a clear idea of what he wants to buy, in this case, a real estate. The seller does not require that property because he owns it and has a clear idea of what he will do with the money he will receive in return, and it is what he needs at that time.

The degree of activity, which is the supply and demand, in any market will fluctuate according to the desirability of the people, therefore, what today is low, tomorrow may be high.

When the demand for real estate is high relative to the supply of them, prices are expected to rise and will tend to attract more sellers to enter the market and, therefore, greater activity. It will be an efficient price analysis that will define this market.

By:  Shailaja K