What is Real Estate? What comes to your mind when I say REAL ESTATE?
WHAT IS REAL ESTATE?
LAND
WHAT IS REAL ESTATE? We observe Land Building Compound Wall Trees Gates Might be a well inside
REAL ESTATE DEFINITION • •
A piece of land, along with the improvements to the land, Such as building, fences, wells that are fixed in location,
appurtenances •
Meaning immovable.
Do not be scared by the word APPURTENANCE in agreements it means Anything attached to a piece of land or such that it becomes a part of that property, and is passed on to a new owner when the property is sold. It may be something tangible like a garage, septic system, water tank, or something abstract such as an easement or right of way. •
Therefore by definition Real Estate is an immovable property.
ROLE OF REAL ESTATE- INDIAN ECONOMY Real estate is second only to agriculture in terms of employment generation and contributes heavily towards the GDP. • 5% of the country’s GDP is contributed to the housing sector & in the next 5 years this contribution to GDP is expected to rise to 6% • Real Estate is responsible for the development of over 250 ancillary industries such as cement, steel, paints etc. • A unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as 5 times. If the economy grows at the rate of 10%, housing sector will grow at the capacity of 14% with a generation of 3.2 million jobs over a decade.
REAL ESTATE - POTENTIAL • • • •
The numbers just for residential real estate for the right product are staggering. The housing requirement for the Rs 3-10 Lacs income groups across 7 major cities are approx. 2.06 million housing units by 2014. Therefore an avg. household size of even 800 sq.ft translates to a req. of 1,650 million sq.ft of residential space. Assuming an average price of Rs 2,000 per sq.ft the total space requirement translates to a market size of Rs 3,300 billion or USD 66 billion.
OUR ROLE- FUTURE FOR THE SELLER • We represent a low cost marketing model for developers, as we are paid on success • As market moves towards maturity and also affordable housing segments developers will be forced to look at the ROI on their current direct marketing methods • Seller interactions can be limited to a validated Customer, educated on pricing and comparable products
FOR A BUYER • For a prospective customer we represent someone not only with information, but an irreplaceable real time experience. • Collectively we have information of every latest transaction that has happened in the market • Can negotiate through us and ensure the chain of communication and information is not broken.