Real estate property is termed as “Real Property” which includes the land and other things that are attached to it. The things can be man-made like a house, godown, etc., and natural can be trees, water bodies, etc. Real estate property differs from personal properties like cars, gold, silver, etc.
Real estate property in India can be sub-divided into five main categories. Residential Property – it includes any property on which residential accommodations are built like apartments, bungalows, duplex, etc. Commercial Property – it includes the properties developed and used for commercial purposes like cinemas, hotels, malls, etc. Industrial Property is the property where manufacturing setups are located like factories, fabrication units, etc. Raw-Land means that parcel of land on which no man-made construction is there like agricultural land, barren land, etc. and the last one is the Special Purpose Property which includes places of worship, government offices, parks, etc.
Characteristics of real estate sector:
The main physical characteristics of Real Estate are that they are immobile means that a particular piece of land can be altered but cannot be removed. They are indestructible means that a particular piece of land cannot be destroyed, they are also Unique means each parcel of land has its geographical uniqueness.
The Real Estate sector is the second largest employer next to agriculture. Much ancillary industry depends on the real estate sector also like cement, steel, brick industry. Thus real estate sector generates direct and indirect employment on a large scale basis. But the Indian real estate sector is still largely unorganized and few dominant players rule the market. The supply of land is also scarce in the urban cities where the land is mainly controlled by city development authority and the other freely available land is under the control of the few very leading players.
There are a plethora of laws governing this sector out of many dates to the pre-independence period. Approximately 100 laws are governing this sector, but still, the problems faced by people are increasing day by day. Corruptions, Scams, Black market dealings regularly tarnish the image of this sector. The central govt. along with the state govt. should form some strong laws regarding this sector to remove the problems thus helping it to contribute to the GDP in a much more effective way.
Aspects of the real estate marketing:
The real estate sector can provide huge employment opportunities to an individual along with a great promising career. E.g. Sales & Marketing – Many real estate companies take the help of different sales & marketing firms for the promotion of the new property. This helps both of them to generate cash and employment. Brokerage firms are also involved in the transactions of the real estate property, where they gain profit by the buying and selling of the real estate from one party to another. Professional Services like lawyers, designers, accountants, contractors, construction workers are also involved at one or the other stage of the real estate property dealing. In this way, the real estate sector provides a direct and indirect benefit to a lot many people. Thus contributing to the rise in the economy of one’s country.