The post The booming sector of Real Estate Management in India appeared first on Star Properties India.
Real estate is gradually growing and becoming one of the most rewarding career options. With a gap 44 million core professionals, this is the best time to hit the lucrative sector with all vigour.After one and a half years of gradual growth, real estate management in India has fathomed its own comfortable ground, and is placed at the right threshold to take a giant leap in the years to come.
While a differential pace of strengthening is evident across sectors, geographies and segments, several property market indicators point to the fact that the industry has indeed bottomed out in the current cycle.
Real estate can be a very rewarding career choice. This is primarily a service business and serving your clients well contributes to your success.
Across the property lifecycle there are several choices available to pursue a career in real estate which must be evaluated vis-à-vis one’s educational background, character strengths and interests.
The property lifecycle initiates with land surveying, where professionals can have a wide array of experience in geometrics, environment, rural land surveying.
There are town and country planning institutes that help bring in trained town planners.
While there are numerous avenues available within the entire gamut of land, real estate management, construction and associated environment fields, the awareness levels of the kind of opportunities available are much lower in India, as compared to the developed economies.
The built environment engages architects and designers, structural engineers, civil engineers, construction project and quality control managers, building and quantity surveyors.
As the nature of real estate projects becomes complex and with growing emphasis on energy efficient and sustainable buildings, facilities management is a practice area that has developed tremendous importance, with the FM services market in India alone being valued at INR 585 billion in 2011 and slated to grow at a CAGR (Compound Annual Growth Rate) of 25% as told by Sachin Sandhir, Managing Director of RICS (Royal Institution of Chartered Surveyors) South Asia.
Real estate valuation is another huge opportunity that has untapped potential. The real estate finance industry needs trained property professionals to carry out land and property valuations for multiple purposes such as lending, financial reporting etc.
Insights to the real estate sector and future prospects
Real estate and construction play an important role in the Indian economy, contributing nearly 17.5% to the nation’s GDP. It is expected to grow at a rate of 30% over the next decade.
Given that 600 million people will inhabit Indian cities by 2030 and an investment requirement of over Rs.39.2 lakh crores needed to meet the growing demand for housing and infrastructure in these cities – widespread development will be necessary.
All this development activity is slated to make Indian construction market as the third largest in the world by 2020 and the anticipated market size of the real estate market is expected to touch $180 billion.
Marketing & Salesmanship
This module helps students understand concepts from the theory of marketing as applied in the field of real estate, selling concepts and techniques for effective selling.
The topics covered under marketing and salesmanship will be the Basic Marketing Concepts, Target Market Segments, Customer Needs, Customer Satisfaction, Concept of Salesmanship, Theories of Selling, Closing Transactions, etc.
Tips on creating your own personal brand to distinguish your services from the rest of the crowd.
Ethics in Real Estate
This module helps one understand the concept of ethics and to learn to apply ethics in the practice of real estate.
It explains the need to have a code of ethics, to understand the conflict of interests, agency representation and responsibilities, statutory duties of a real estate professional etc.
Property Management
This module helps acquaint the student with the fundamentals of the vocation of Property Management and equip him / her with the strategy used in the practice of Property Management.
It will guide the student in designing a Management Plan to suit todays needs.
Personality Development & Enhancement Techniques
This module aims at helping one understand one’s personality, parameters that define a well developed personality, techniques of developing one’s own personality, interpersonal relationship, etc.
The topics covered under this section include the Johari Window concept, Skills in Communication, Grooming, Behavioural Changes, Traits and Character, etc.
Real Estate Finance
Finance forms a major constraint, with not only buyers, but also the developers in the field of real estate. This course offers an insight into both types of finance – retail / individual finance and institutional / project finance.
Legal Aspects
This module helps understand the importance of law in the business of real estate. To understand the instruments available within the gamut of laws that cover real estate.
The objective is to equip the professional with an understanding of the legal aspects that encompass the business of real estate. Thus the professional will be able to use this understanding to guide the client to avail of suitable legal services.
The different formats into which real estate management is categorized are:
Residential
Commercial
IT parks
Shopping Malls
SEZ – Special economic zones
Real estate, both residential and commercial property, makes a key contribution to the economy. It has a number of distinct features.
Real estate is fixed in location; no two properties are identical; property has a long life; the development and purchase of real estate is costly.
Government plays a major role in regulating the market through the planning system, taxation and environmental policies.
Decisions about real estate are complex and fascinating and play a key role in the competitiveness of economies. Firms use commercial real estate for their business operations. They must decide how much space they need and where it should be located.
They must choose between renting and buying and, because land and property is scarce, they must compete with other firms for buildings.
New supply of space depends on the decisions of developers, banks and planning authorities. The operation of the housing market determines household access to a decent home.
House prices have a major effect on family wealth, on inflation and on consumer spending.
These key impacts on the economy and society lead to pressure for Government intervention. Despite differences, there are common economic and legal factors shaping both the commercial and the residential markets.
Even though, the built environment makes the sector one of the most visible across the globe, in India it is still regarded as a less viable career choice as compared to the more traditional careers chosen by doctors, teachers, lawyers, accountants etc.
This to a large part can be attributed to the lack of familiarity with the tenants that encompass the real estate and construction sector and also to the overall unprofessional image that the sector has projected thus far as inferred by Sachin Sandhir.
To get better acquainted, there are numerous avenues available within the entire gamut of land, real estate, construction and associated environment fields; however the awareness levels of the kind of opportunities available are much lower in India, as compared to developed economies.
There is much more to real estate than just brokerage services and construction development as opposed to popular public belief.
As a result of the heightened complexities in and the nascent stage of Indian Property Market, the study of real estate draws on many disciplines: Real Estate appraisal & valuation, project analysis and due diligence, economics; finance and investment, geography, business management, property laws, planning & zoning, marketing & leasing etc, applying insights from these subjects to help understand how property markets function.
Real Estate Professionals with this mix of skills are vital if real estate markets are to operate efficiently and deliver the range of objectives required by real estate users, investors and developers.
The IDS-NIREM postgraduate diploma programmes are designed to provide graduates with the necessary skills and knowledge to develop careers in the real estate industry in its many facets. The real estate industry offers a wide range of career paths.
What are the differences between a free lance real estate agent and a professional real estate agent?
The RICS, MD says consumers typically trust the advice of brokers at face value.
Given the growing influx of untrained and inexperienced individuals entering the profession where there are no restrictions to practice, coupled with rising property prices luring more people to offer brokering services to make quick commissions, consumers subsequently realize that they have been misinformed.
Real Estate Agency Standards have been formulated and are being promoted to provide best practice guidance for real estate agents and builders involved in direct sale of properties.
Some qualities that the course instils in you are that agents are made aware on relevant law and good practice in residential estate agency and provides detailed guidance on how they should act ethically (moral responsibility) and legally; securing instructions from clients and closing transactions; avoiding conflict of interest at any stage of the transaction; guidance on acting on behalf of a single client/party involved in the transaction (i.e. buyer or seller); complaints handling etc.
A step by step path to reach a top-notch position.
To a large extent being a part of the service industry, employers seek people with a combination of strong deal-making and interpersonal skills with the ability of analyzing, negotiating, researching and planning ahead.
In some cases three-in-one assessment strategies may be adopted to recruit, select and train personnel based on their comprehensive ability, intelligence and personality traits.
Therefore a combination of one’s educational qualification, experience and job title affects ones remuneration.
A pay scale idea:
There are various disciplines within real estate and depending on what field one opts for the starting salary for a Management Trainee can be to the tune of INR 4-8 lakhs per annum.
On the consulting side, people may wish to join International Property Consulting Firms (IPC’s) where there are different streams such as valuation, project management, facilities management and transactions/agency. In these roles trainees can get a salary of INR 4-6 lakhs per annum.
On the development side of the business, trainees can be engaged in business development which involves feasibility studies, joint ventures etc.
On the corporate sales side, entry level employees are engaged in corporate, residential and retail sales. In these capacities the starting salary levels are to the tune of INR 4-8 lakhs.
In terms of growth prospects, basis the understanding an individual projects towards the business, over a span of 10 years a management trainee can graduate to a Associate Director or Director level in the IPC’s and over a span of 15 years to a MD level employee in the development business, where salaries typically range between INR 60-80 lakhs and include a bonus element which can raise the package to nearly INR 1 crore per annum.
On the development side of the business, there is also a growing demand for professionals engaged in project management and quantity surveying.
Given the increased demand for such professionals in the sector, there are lucrative opportunities available to people with the right skills sets and educational qualification, such as those individuals passing out of NICMAR etc., where even entry level professionals can get as much as INR 5-8 lakhs per annum.
The real estate management offers a wide range of career paths. Real estate underpins the operation of the economy; it is a store of wealth.
There is a demand-supply gap of 44 million core professionals in the sector. With a gap so wide, its the right time to proceed with a Real estate management course.
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The post The booming sector of Real Estate Management in India appeared first on Star Properties India.