Submarket in the real estate sector

Submarket – In real estate, the market is divided into several submarkets. These submarkets include residential, commercial, industrial, and specialty real estate. Each of these submarkets can be further subdivided. For example, the residential market can be divided into houses and apartments, which can then be further subdivided. It is not uncommon for submarkets to overlap at the edges. For example, a prospective buyer of a two-room apartment may switch to a three-room apartment due to a lack of supply, even though these are two different submarkets.