Real Career in Real Estate Sector – Dr. Deependra Sharma, Amity Business School, Gurgaon
“Water, water, everywhere, Nor any drop to drink.”
– Samuel Taylor Coleridge
Almost 35% of the world’s wealth is tied up in real estate. It is estimated that real estate industry needs around 5 million professionals, including architects, civil engineers, planners and facility managers, every year, but only one million such professionals pass out from Indian institutes annually. Further, most of the real estate projects get delayed by three-four years and the acute skill shortage is a major contributor to this issue.
As the Indian economy continues to grow jobs are likely to reach the level of 5 million level by 2015. Consequently, the housing boom spurred by the requirements of office space and residential apartments is going to pick up steam over the next few years and reach a new high by 2016. With the phenomenal growth in the Real Estate sector during the last few years, property and Real Estate business has transformed to become more complex in structure and international in scope.
There is a Real Estate business opportunity of 100, 00,000 crores in India spread over the next 20 years which is likely to grow at an annual rate of 15% during the next 20 years. The residential real estate broking sector at present is estimated to be worth about Rs. 2,500 crores and is growing at a rate of approximately 20 to 25 per cent per annum.
This scenario answers the question with which the article started and says a lot about the potential of career (not job only) in real estate sector.
FACTS ABOUT INDIAN RETAIL
The Real Estate Sector in India provides Employment to about 33 to 36 million people. This sector consists of the Real Estate (Residential, Commercial and SEZ’s) and Infrastructure.
The GDP economy of construction will grow at a CAGR of 9.5% to 10% till 2022 in real terms. This would translate to the overall employment in the industry increasing from the current level of around 36 to over 83 million by 2022.
This sector for employment will emphasize more on highly skilled professionals than on the educational profile. The incremental human resource requirement in the “skilled workforce” alone is expected to be above 9 million. The training requirements of this manpower have massive potential.
Real Estate Professionals with mix of skills are vital if real estate market is to operate efficiently and deliver the range of objectives required by real estate users, investors and developers.
REASONS FOR GROWTH
Real Estate industry is one of the fastest growing industries in India with an estimated market size of USD12 million and an annual growth rate of 30%. Factors such as the changing demographics, increasing affluence, large segments of population becoming economically active, increasing urbanization, rise of nuclear families, and the desire to own rather than rent a house, are the key drivers that are shaping up the demand in the real estate sector.
The advent of organized retail market with players such as Wal-Mart, Reliance, Spencer, etc, who are looking to expand into Tier 2 and Tier 3 cities, has further boosted the real estate market and therefore, the opportunities offered by the industry.
SCOPE IN REAL ESTATE DEVELOPMENT CAREER
The career opportunities that the real estate sector provide an individual in India are as Residential real estate broker ,Commercial real estate broker ,Real estate appraiser ,Property manager, Facilities manager, Real estate investment consultant ,Project development experts. Further, in this sector individual gets benefit in terms of independency, sense of achievement,. unlimited income, huge potential, work schedule.
WHY TO JOIN REAL ESTATE COURSES?
Having read all this it is possible that one may get interested in pursuing career in this field. For them the following information would be of some help.
The scenario is changing fast and there is a lot of professionalism coming in because of the arrival of major players. Developers are cleaning up their acts and introducing best practices and higher transparency now, thanks to evolving market dynamics. People equipped with the right know-how, training and professionalism are in high demand, and are paid correspondingly.
The emergence of Indian real estate as a new academic focus is, of course, heartening. Equipping students with a basic understanding of the real estate market is as valid as instructing them on stock market dynamics – knowledge of either field can open up various career possibilities and attract youthful progressiveness into the sector.
And as in every other business field, the instructed youth of today are the leaders of tomorrow.
Fees may vary between Rs 60,000 to 1, 00,000 per year depending on the college one chooses. However, one can borrow a loan from a bank, which offers a loan of up to Rs. 7.5 lacs.
The pay packet for real estate sales executives may start from a minimum of Rs. 15,000 and go up to Rs. 50,000 based on the business he brings. If one has been hired on a commission basis for the realty or mortgage department in a bank or private financing companies, one will earn proportionate to the business relationships. As a civil engineer, one may be placed as structures managers for a higher starting salary of Rs. 20,000 to Rs. 25,000 per month.
With land and buildings being integral parts of any venture that is initiated, real estate is an industry that will always keep thriving and offering lucrative career opportunities. The industry offers career opportunities not only to the individuals with a background in the Real Estate sector but also to those coming from finance, marketing, consulting, general management, and other domains.
All aspiring real estate professionals are advised is to educate themselves to the maximum extent possible on all aspects of the property sector and the business world. He is expected not only to have strong understanding of sound business ethics but also must believe them.
As discussed opportunities in this sector are highly lucrative yet most of the Indian Colleges, Universities and even Business Schools do not offer any structured Real Estate Management programs.
Thus, real estate provides an opportunity to students as well as to various institutes who are already in the education sector but have not focused on this sector. If this happens, it will be a win-win situation for prospective employer, prospective employee and educational institutes.
Article by Dr. Deependra Sharma, Amity Business School, Gurgaon.