What is Real Estate? What comes to your mind when I say REAL ESTATE?
WHAT IS REAL ESTATE?
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,
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.