The real estate industry is one of the largest in the United States, employing millions of people in a wide variety of jobs. Of course, there are real estate agents – brokers and salespeople whose job it is to bring buyers and sellers together. But there are many others involved as well: lawyers, appraisers and … Continue reading “The Real Estate Industry”
The real estate industry is one of the largest in the United States, employing millions of people in a wide variety of jobs. Of course, there are real estate agents – brokers and salespeople whose job it is to bring buyers and sellers together. But there are many others involved as well: lawyers, appraisers and inspectors, for example. There are also developers, architects and builders, lending, institutions and mortgage brokers. Even real estate agents have begun to specialize, creating new niches in the profession: transactional brokers and buyer’s brokers.
The real estate industry helps individuals and companies buy, sell, lease, manage, and evaluate property. Often people have the idea that real estate agents are concerned only with buying and selling homes and condominiums. And they are right at least up to a point. Real estate agents help others buy and sell residential, agricultural, commercial, and industrial properties; lease and manage office buildings, shopping centers, and apartment buildings; oversee real estate on behalf of banks, pension funds, and publicly traded real estate companies; and evaluate properties for individuals, banks, and insurance companies
Real estate agents come into two flavors: those you can work with and those you cannot. You are looking for an agent you can work with – someone with whom you can establish good chemistry and who will bring you a steady stream of properties to inspect and make offers on.
Real estate agents play a fundamental part in the use and exchange of one of this country’s most important resources – real property. The real estate industry offers a wide variety of opportunities to men and women of all ages and backgrounds. Real estate brokers and sales agents must be licensed by the government in which they work.
Perhaps no single factor has had a more significant change on the real estate industry than computerization and the use of the internet to transfer information. Developers and builders of real estate can transfer building structures and tenders via the web to save time and money in the construction process. Real estate agents now can access home listings from an internet service on their laptops or even on their personal digital assistances, and then e-mail housing information to clients.
Real estate franchising is determines with few industries accounting for most of the market. Franchises provide smaller real estate brokers with many of the same advantaged enjoyed by national and regional firms. Franchises are talented to manage to pay for larger nationwide publicity budgets so that their name becomes well identified. Franchises put forward members training in management and sales techniques that can help them run their companies better. Many franchises also buy supplies such as contracts in quantity and pass the savings along to their members. Franchises have helped many smaller brokers who might otherwise have been unable to compete with large local firms. But the rapid growth of franchises has also resulted in many franchises taking as members firms that are fruitless and troubling their successful members with these not very competent coworkers.
If you aren’t a part of any of the two above mentioned industries, wake up and smell the coffee. Both are high powered industries with robust forces driving them skilfully. With the United States alone having 6 million new citizens every single year, the demand for real estate is indispensable and soaring. Similarly home based businesses are equally popular on account of the acute flexibility, versatility and expedience they offer. Top that with a low-investment and big rewards and you have an impeccable business model that flourishes over a period of time.
Compared to the home business industry the real estate industry requires a larger start-up capital depending on how strong you want to build your business. There are operational and administrative costs in addition other high overheads to contend with and a volatile market that is constantly at the mercy of fluctuating trends. A home business on the other hand can be started with minimum investment and can function with negligible overheads as there isn’t an office rent or high electricity, transport or telephone bills involved. No expensive equipments are required (depending on the venture again) in a home business in contrast to the stockpile of photocopy, fax and other mechanisms required by a real estate enterprise.
The real estate industry is no doubt a high turnover industry that has absolute potential to reap rich profits for its investors. However, the recent economic global slowdown has given little opportunity for construction activity or selling and purchasing of high-end real estate in the past few months. The real estate industry has being lying low for sometime in comparison to the hyperactive home business industry that is devising new and inventive ways to stay afloat in a plunging economy. Home businesses have become the buzz word, with people from varied backgrounds rapidly donning the entrepreneurial mantle.
This is not to say that the real estate industry has been shoved to the back burner – Au contraire – real estate dealers who are smart enough have spotted the opportunity to take advantage of a slow moving market to satiate demands that are rising each day. Due to a liquidity crisis most construction ventures have come to a halt. The stunted cash flow is one of the prime reasons for this phenomenon. Therefore you have a situation where the inventory is dipping and an impending demand is building up. This spells a latent real estate industry energy that is waiting to explode making both the real estate industry and the online business good options to invest in.
The real estate industry is the 2nd largest employer in India. Agriculture is the largest employer. This industry contributes 6.3% to India’s GDP. The value of this industry is currently estimated at USD 67 billion. The figure is estimated to touch USD 180 billion by 2020. Foreign Direct Investment (FDI) in this sector is expected to grow to USD 24 billion in the next 10 years from the current USD 4 billion. The real estate market of India is one of the fastest growing real estate markets in the world. The growing income has enabled the Indian middle class to take up real estate as an investment class. This has fueled a tremendous growth in demand. The sector creates 7.6 million jobs. This figure is expected to grow to 17 million by 2025.
There are four sub-sectors of the Indian real estate industry – housing, retail, commercial and hospitality. The housing industry has seen great demand over the last decade. It has been a market which has seen shortfall in supply consistently. However, that is changing now. The hot markets of Gurgaon and Noida in NCR, Mumbai, Bangalore, Hyderabad, Chennai, Pune, Indore and some other places are kind of stagnating. Prices are not appreciating as they have reached almost tipping point. The rent yield of Indian real estate is at 2.7% compared to 4.7% in US and 4.5% in Japan. This shows that the Indian real estate was overvalued. Now the market is moving away from being speculative and prices are getting more real.
The retail and commercial space demand is originating mostly from metro cities in India. It is expected to see an upward trend albeit in single digits. The business in this space seems to be taking a shift from sales to lease and maintenance. The prime office space segment across the country’s key cities – Mumbai, Delhi and NCR, Pune and Bangalore has seen a fresh supply infusion. In the first six months of 2013, 20 million square feet of office space has been added witnessing a year on year growth of 16%. Hospitality market comprises hotels, service apartments and convention centers. Delhi NCR and Mumbai remain the biggest hospitality markets in India. The hospitality sector is gaining from the increase in tourism. This increase is triggered both by foreign and domestic tourists. Niche areas like medical tourism in India are also gaining in global popularity. The developing and international quality medical facilities in India are enabling this sector.
The real estate industry is harder and more challenging than ever before. In this article I am going to share with you a simple concept that has helped push me through the most challenging times I have ever seen in the real estate industry. I wanted to share this idea with you in case you were thinking about giving up and changing careers.
Why are you in this industry?
Many people decided on being a realtor because they thought it would be an opportunity to control their time, have their own business and earn a great living. Although all that is true if you are disciplined I want to invite you to think a little deeper on the topic. The clearer you can be about why you do what you do the more likely you will be to succeed.
A couple questions you can ask yourself to help define your purpose and get better results in the real estate industry.
What are 3 unique qualities that make you an excellent realtor? Asking that question has helped me realize the value I bring to the table and the importance of my work. Its helped build my confidence, understand and leverage my strengths while I work on my weaknesses.
What are the 3 biggest benefits you get in your life when you have a successful month and lots of real estate closings?
Why are those things important to you? Who else gets benefits from those results? This helps me bring to the front of my mind what my big WHY is for staying in this business.
Doing your job well and getting more real estate clients doesn’t just affect your life, your family’s life, or your team. There are also circumstances where people hire realtors that are not making that much money and are making poor decisions that could effect your potential clients in a negative way.
What could happen if someone that should use you as their realtor uses a realtor that doesn’t keep their best interest at heart? How else could that effect their life?
I think about this a lot because it inspires me to really get aggressive and It makes me feel like I am on a deeper mission when prospecting for clients. I think the people I work with can feel that I have a strong intention for their well being also…helping me build trust and attract more clients in the long run through referrals.
Though we have experienced drastic economic issues in last year, still Kerala is a paradise for real estate agents. Kerala is a beautiful greenish state situated in southern part of India. Till now we can see the flow of money from other sources to real estate industry. Investing money in land and properties is benefited not only as an asset but also as a deposit for future. Comparing to other investing methods, real estate seems to be more rigid and free from high fluctuations in exchange rate. Economic specialists recommend youngsters to invest their money in solid assets like land, house,buildings etc compared to investing money in share markets. If you are not ready to participate in high risk business like share and equity markets, the best choice is real-estate business.
In India one of the major destination for real estate companies is kerala right after major metro cities. It is because of some of the following reasons.
* Growth of tourism in Kerala
* Flow of NRI (Non-Resident Indian)money to this state
* Growth of IT and IT related services in Kerala
* High human density
Kerala is one of the top rated tourist hub in International tourism map. If we compare the over all foreign visitors who came to India, Kerala enjoys the major share of it. Warm and pleasant climate, hill stations, beaches and back waters of Kerala attract visitors and the number of them increases per year. So investing money in acquiring properties in tourist places in Kerala is a new trend we can see.
Another reason for the sudden growth of real-estate in Kerala is the huge flow of NRL income. Kerala is the highly literate state in India and most of the youth is employed in United States, European couturiers and in Middle East. The money send by them is mainly used to purchase land and buildings. This phenomenon is one of the major backbone of real-estate industry in Kerala.
After tourism and NRI income, IT is the next major source of income in Kerala. In recent years Government of Kerala is promoting IT industries in Kerala and many new companies started their operation in Kerala. Introduction of major IT cities encourage the investment of money in acquiring lands near them.