Based on your understanding of the effect of agglomeration economies in real estate, you would expect institutional investors to most favor real estate investments in which of the following areas?
A) small urban markets
B) large urban markets
C) small rural markets
D) large rural markets

Question

Quizplus · Accepted Answer

Institutional investors are likely to favor real estate investments in large urban markets due to the agglomeration economies present in these areas. Larger cities often have diverse businesses, skilled workforce, and infrastructure that enhance economic growth, making them attractive to investors. Additionally, large urban markets often have higher levels of demand for real estate, which can lead to greater potential for financial return.

Based on Your Understanding of the Effect of Agglomeration Economies