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alekssr [168]
4 years ago
14

Newton Bay is a sparsely populated area. The government plans to build an international airport there and announce this plan Pub

licly. When hotel chains learn about the airport, they become interested in building new hotels near the airport to accommodate travelers. What is the likely economic impact of this situation on commercial real state in Newton Bay
Select all that apply
A. The demand for land will increase
B. The price of land will decrease
C. The demand for land will decrease
D. The price of land will increase
E. The demand for land will not change
Business
2 answers:
djverab [1.8K]4 years ago
6 0

Answer:

the impact on commercial real estate will be that:

  • The demand for land will increase ( A )
  • The price of land will increase ( D )

Explanation:

If the government plans to build any Government project ( as in this case an Airport )in an area leads to urbanization of an area if the area is not properly urbanized, even if the area is an urbanized area already it will lead to more business and individuals moving closer to that area where the projects is been sighted.

The increase in the influx of people will lead to the demand for accommodation and spaces for business, hence the demand for available land will increase which will in turn lead to the increase in the price of the land . already developed real estate properties rents and lease will significantly also increase .

The interest of hotel chains is also a very strong factor that will make the prices of land to increase.

ad-work [718]4 years ago
3 0

Answer

The demand for land will increase. and the price of land will increase.

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