Career In The Real Estate Industry

Nidhi Prasad

 What is Real Estate?

The term 'real estate' refers to the ownership of land or building and those who deal in such transactions are real estate agents or brokers. They help people buy, sell or lease homes, buildings and land. It is one of the most globally recognized sectors. It comprises of four sub sectors - housing, retail, hospitality, and commercial.

Residential Real Estate means houses, bungalows, condominiums, duplex homes etc. where people live, while Commercial Real Estate includes office buildings, office complexes, industrial premises etc. Residential real estate agents specialize in working with individuals and families, while commercial agents deal with office space and buildings.

Real estate in India gained tremendous growth in past few decades. The second largest employment generating sector in the country after agriculture, it has opened doors for direct foreign investment in India and enhanced career prospects for professionals and agents.

Property or Real Estate Management, often known as Area Management, in some cases also involves rent collection, outgoings of payments, insurance payments, managing payment of maintenance staff, and negotiating while using current and prospective tenants. Property or Real Estate Managers, responsible for the operation of various real estate properties, help to coordinate all financial and administrative operations of real estate investments. They focus on maximizing real estate profit for businesses and investors.

 A real estate consultant deals with high-value property assets. He needs to have a clear understanding of what each client is looking for, align these requirements with the broader market scenario and be able to deliver value in a complex and unstructured marketplace. His services range from showing properties, analysing area sales statistics, examining contracts before making offers or closing deals etc. Negotiation skills are absolutely mandatory to succeed in this field, and these are best picked up by observing seasoned veterans.

 Most real estate agents are independent sales people who work for a real estate brokerage firm, or provide their services on behalf of a licensed real estate broker. They can also act as intermediaries in price negotiations between buyers and sellers. For many, there are no fixed working hours, nor a fixed monthly income. They are paid a commission which is a percentage of the sales price of each transaction so the earning potential is unlimited.

 ELIGIBILITY

While a qualification in this field is not essential, most real estate companies and multi-national organizations prefer candidates who have done a course in real estate management. There is MBA, diploma, post graduate diploma and certificate courses offered in Real Estate Management.

The eligibility for an MBA in Real Estate Management is graduation. Other courses like diploma and certificate can be done after completing 10+2. Some of the courses are also offered in distance mode. A course in this field covers subject areas such as risk management, economics, real estate law, property valuation and analysis, property management and market research, Construction Economics, Infrastructure Finance, Development & Management, Real Estate Laws, Entrepreneurship in Real Estate Management, Real Estate Marketing.

 SKILLS REQUIRED

One must be job-ready with a bunch of skills to succeed and grow in the hierarchy in the property industry.

The primary set of skills that are required in this field are the passion and drive to work with India's demanding property seekers rich. Aspiring real estate professionals should educate themselves to the maximum extent possible on all aspects of the property sector and the business world - and, further, not to rely on knowledge alone but to avail of expert mentoring before actually venturing into the field. Negotiation skills are absolutely mandatory to succeed in this field, and these are best picked up by observing seasoned veterans.He or she must also have a firm understanding of sound business ethics, and must believe in them.

To work on the technical side and then to get a job in the real estate and infrastructure industry, you may have to complete a degree in civil engineering or construction engineering from any engineering college across the country. Besides technical jobs, you could be an MBA in sales and marketing or international relations or hold a degree in business communication to get started with a construction company.

Proficiency with skills like basic computation of construction input cost, a rough idea of appreciation, knowledge of regulations related to stamp duty, property tax and registration charges, and primary knowledge of specific building codes etc., come in handy for an aspiring real estate executive.

Useful Skills in This Career: 

·         Technical aspects of building and construction 

·        Latest news on market prices per square feet of home/land/plots in different areas 

·        Stocks and shares status of various companies 

·         Various marketing, selling, and pricing strategies to attract customers 

·         Large network of shareholders or buyers

 In addition to the abovementioned skills the overall wisdom regarding the work is required. The most successful agents never quit improving. Their passion for improvement is acute, and they're self-disciplined.

Being an active listener and an excellent communicator with an energetic attitude can help you build a promising career in the real estate industry. The Indian real estate market is now adapting to international best practices, and the future belongs to polished professionals.

JOB ROLES

The real estate industry is vast, the sector now offers one of the widest career choices one can think of. From investment banking and management to research, valuations, project manage-ment, quantity surveying, corporate real estate, facilities management, sales and marketing, the industry offers plenty of job roles.

The real estate industry can be divided into several different areas: 

·        Development 

·         Sales and marketing 

·        Brokerage 

·        Property management 

·         Lending 

·        Professional services (law, accounting, etc.)

The following are some of job roles available in the real estate sector:

Residential real estate broker- A broker dealing in residential properties may represent either the buyer or the seller.

Commercial real estate broker -Such a broker sells hotels, office space and similar commercial real estate properties. He/she may concentrate solely on retail office space, mall space, industrial space or hospitality space.

Real estate appraiser- Such people determine the fair market value of a home for sale. They assess the value of properties on behalf of an appraisal firm, a bank or even major private investors.

Property Manager - Such a person usually is part of a professional property management firm and looks after the investment of the property owners. He handles customers and manages lease and rent deals.

Facilities Manager - Facilities management as a concept has just begun emerging as the best possible route of maximize profitability and reduce overheads in large real estate projects such as residential townships, office buildings and malls.

Real Estate investment consultant - Such a person has extensive inside knowledge of the real estate market and advises property investors on the best investment options. His main focus is to locate properties that will appreciate in value.

 Project development experts - Such people are at the very nexus of the property market, and help create saleable properties. They advise developers on all aspects of the project, from the blueprint stage to final deployment.

Sales and Marketing-Sales and marketing firms work with developers to sell the buildings and units they create. These firms earn a commission for creating all marketing material and using their sales agents to sell the inventory of completed units. These firms typically focus on new units.

Professional Services-There are a variety of real estate professionals who work in the industry and help make it function. The most common examples (other than the ones listed above) are accountants, lawyers, interior designers, stagers, general contractors, construction workers, and trades people.

Here are the most common jobs roles in the industry: 

·        Analyst - Performing financial analysis and valuation of properties 

·        Appraiser - Valuing properties 

·        Agent - a sales agent or "realtor" 

·        Building Inspector - Someone who examines buildings and works with appraisers 

·         Commercial Broker - An agent who sells commercial properties 

·         Loan Underwriter - A person who analyses the creditworthiness of a borrower 

·        Mortgage Specialist / Underwriter - A person who approves mortgage applications 

·        Real Estate Attorney - A lawyer who specializes in real estate transactions

with multiple projects in pipeline, realty sector is an ideal launchpad for civil engineers. It's a challenging role as one is expected to design, develop, create and maintain construction projects at construction sites.

 Realty space has become very competitive. Today, graphic designers, 3D animators combined with digital marketers give a competitive edge to companies over their competitors as they tap into various social media and online platforms to reach out to their potential customers. These are specialized roles and are highly sought after in the market today.

 Today software professionals are in much demand as organizations are deploying the use of virtual and augmented reality for making the home buying experience more accessible and AI & machine learning to take home search to the next level. There are immense learning opportunities and there is no limit to the scope of growth if one wants to fast track one's career as a software professional.

SCOPE

Infrastructure and Real Estate is the right career for you if you have penchant and passion for making big money, inclination to 24/7 hard work, and the ability to guide and supervise a team of builders, consultants, labourers and site managers.

Today in India, several popular websites such as www.India property.com, www.99acres.com and www.India housing.com allow people to buy and sell properties across the country. These websites act as mediators between buyers and sellers and can help new entrants into the business. Advertisements in newspapers are also a source of developing business.

Real estate managers work for government agencies that manage public buildings, real estate development companies and corporations that have extensive real estate holdings. Real estate Managers also find work with real estate departments in banks, NBFCs and trust companies. They are also employed by property management firms and real estate brokers. Owners of residential homes, apartments, office buildings, or retail or industrial properties as well as home owner associations hire a property or real estate manager for the day-to-day management of their real estate investments.

 List of Institutions -Top institutes are: 

·         National Institute of Construction Management and Research, Pune NICMAR 

·         Indian Institute of Real Estate (IIRE), Pune 

·         RICS School of Built Environment, Amity University, Noida-www.ricssbe. org 

·         Sushant University, Gurgaon www.sushantuniversity.edu.in 

·         Teri University, Delhi- www.teriuniver sity.ac.in

Market Size

By 2040, real estate market will grow to Rs. 65,000 crores from Rs.12,000 crores in 2019. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.

Government of India along with the governments of respective States has taken several initiatives to encourage development in the sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies.

A real estate consultant has the complex and responsibility-driven role of dealing with high-value property assets. Hence, a potent combination of technical know-how, market insight and ethical values are the cornerstones of a perfect real estate professional.

An unbiased opinion from someone who has been in the industry for long is usually valuable before stepping your foot in. He/she will be able to give you not only a better understanding of the job profiles but also the competitive trends apparent in the market. This will give you an edge in polishing your skillset as per the market standards.

As the second largest employer in the country, there is no dearth of career opportunities in real estate sector. From Civil Engineers and Sales Executives to Technology, Finance, HR, Legal and Marketing professionals, there is something for everyone in the sector. As the sector is evolving, there is also an increasing need for niche roles like architects, landscape designers, digital marketers, graphic designers, 3D animators, AI professionals, etc.

Real estate can be the go-to career option for the millennials today.

(The author is Counselling Psychologist & Career Consultant. She can be reached at nidhiprasadcs@ gmail.com)

Views expressed are personal