It’s another day to explore the World of Real Estate.
How did Real Estate business come into existence?
Come along with us on this episode of our Real estate weekly blog because it is going to be an interesting piece to read.
Enjoy!
The idea of real estate that is the ownership and transfer of land and property, has been part of human civilization for thousands of years. The interesting fact remains that the organized real estate business which we know today began to take its form or shape in the ancient civilizations. Therefore, the idea of real estate business has been in existence way before the use of machine or technology.
According to history, the earliest recorded evidence of real estate business/transactions can be traced back to the ancient Mesopotamia which is as far back as 3000 BCE, where clay tablets documented land sales and transfers that is even before the existence of computer, clay tablets served as a means of documentation, isn’t that interesting? Sure it is
NB: In the ancient Mesopotamia, these transactions were often overseen by the ruling class or the temple authorities.
Another interesting place where real estate business/transactions existed way before technology was the Ancient Egypt, which was as far back as 2700 BCE.
In ancient Egypt, the Pharaohs and nobility held vast tracts of land that is they were the authority that kept records and documentations on land transactions. The state in the ancient Egypt played an important and significant role in managing and distributing land among the population, and a rudimentary system of property ownership and taxation was established.
NB: In ancient Egypt it was through property ownership that is land and house taxation came into existence.
Another Fun fact about where and when Real estate business came into existence was not only in ancient Mesopotamia, or ancient Egypt but it also existed in Ancient Rome from 27 BCE to 476 CE.
The Romans made notable contributions to the development of real estate business/practices. They introduced formalized property laws which includes the concept of Private ownership and the ability to transfer property through sale or inheritance. The Romans also constructed elaborate systems of roads and aqueducts ( which means an artificial channel that is constructed to convey water from location to another ), which influenced the value and development of properties along these routes.
After the existence of real estate business in the ancient world, it gradually began to find it way to Europe which was refered to as the Middle Ages at that time.
During that period, the Feudal Europe came into existence which lasted from the 9th century to 15th Century.
At that time, Feudalism dominated Europe during the Middle Ages.
NB: Feudalism means – a social system based on personal ownership of resources and personal fealty between a suzerain (lord) and a vassal (subject). Defining characteristics are direct ownership of resources, personal loyalty, and a hierarchical social structure reinforced by religion.
Therefore, the land was owned by feudal lords and peasants ( that is a member of the lowly social class which toils on the land, constituted by small farmers and tenants, sharecroppers, farmhands and other laborers on the land where they form the main labor force in agriculture and horticulture) worked on that land in exchanged for protection and a share of the crops.
Real Estate business/ transactions were primarily associated or based on the agreements between feudal lords.
However, after the existence of the feudalism in Europe, this gave rise to the Renaissance and the beginning of Private property ownership which lasted from the 14th century to the 17th century.
NB: The Renaissance period means the transition period between the medieval and modern times.
This period brought about a shift toward the recognition of Private property rights. The emergence of strong central governments in Europe led to the establishment of land registries, legal frameworks for property ownership, and the formalization of property rights.
Gradually, real estate business began to experience new change from the Renaissance period which led to the rise of Industrial Revolution which lasted from the 18th to 19th centuries.
The Industrial Revolution marked a significant turning point for the real estate industry that is the growth of cities and industries created a demand for housing and commercial spaces. Large-scale urban development and the establishment of modern property markets emerged, with the involvement of architects, developers, and investors.
Therefore, the emergence of Industrial Revolution made a pathway for the Modern Real Estate industry which lasted from the 20th century till date.
The 20th century witnessed the further professionalization and institutionalization of the real estate business/industry.
It should be noted that the Modern Real Estate industry made ways for the existence of Real Estate agents and brokers which made them more prevalent and organizations like the National Association of Realtors (NAR) in the United States were founded to establish ethical standards and promote professionalism.
You can see that Real Estate business/industry experienced different evolution which started from the Ancients period to the Modern day.
Today, the real estate industry/ business is a diverse sector, which encompasses residential, commercial, industrial and agricultural properties. It plays a crucial role in economic growth and serves as an investment avenue for individuals and institutions alike unlike the ancient times which was basically on land transactions only.
The Real Estate business/Industry has evolved significantly over time, adapting to societal, economic and technological changes.
We hope you enjoyed every piece of this interesting history of how real estate business/industry came into existence and how it has evolved overtime.
Join us on the next episode of on our Real Estate blog.
Thank you
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