Axia Valuers

New world order in Real Estate - Economy Today, Golden List of Real Estate

The Scotsman Adam Smith (1723-1790) and the German Karl Marx (1818- 1883) are two of the most important personalities who marked the science of political economy with their theories on the economy. While Marx founded communism (‘Capital’), Smith is considered to be the father of capitalism (‘The Wealth of Nations’). Although their ideas were diametrically opposed, they agree in that they define land monopoly as absolute monopoly. This is because the primary sector of the economy, namely agriculture, farming, etc., is based on land ownership. And thus whoever owns the land, has control over the primary sector of the economy. The secondary sector of the economy concerns manufacturing. Again, facilities, industries, craft industries, etc. are required. Real estate is an essential component in this case as well. The tertiary sector of the economy, the service sector, (offices, schools, sports
facilities, trade, etc.) also requires real estate. Thus real estate becomes of utmost importance for the economy in the tertiary sector too.

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