Real Estate : Meaning & History

An Overview

                  

Real Estate

Real Estate :  Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

An Item Of Real Property : More generally buildings or housing .

Business Of Real Estate : The profession of buying, selling, or renting land, buildings or housing.

Real Estate Development or Property Development : A multifaceted Business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property. Real estate development is different from construction, although many developers also construct.

Developers buy land, finance real estate deals, build or have Real Estate Developers build projects, create, imagine, control and orchestrate the process of development from the beginning to end. Developers usually take the greatest risk in the creation or renovation of real estate—and receive the greatest rewards. Typically, developers purchase a piece of land, determine the marketing of the property, develop the building program and design, obtain the necessary government approvals, build the property, rent out and/or sell it. .

Sometimes property developers will only undertake part of the process. For example some developers source a property get the plans and permits approved before on selling the property with the plans and permits to a Real Estate Developer at a premium price. The term used for the area thus sold is FSI(Floor Space Index).

Alternatively, a developer that is also a Real Estate Developer may purchase a property with the plans and permits in place so that they do not have the risk of failing to obtain planning approval and can start construction on the development immediately. Developers work with many different counterparts in each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, leasing agents and more.

Residential Real Estate

Residential Real Estate is a type of property, containing either a single family or multifamily structure, that is available for occupation for non-business purposes.

Residences can be classified by, if, and how they are connected to neighboring residences and land. Different types of housing tenure can be used for the same physical type.

For example, connected residents might   be owned by a single entity and leased out, or owned separately with an     agreement covering the relationship between units and common areas and concerns.

Major categories in Residential Real Estate:

Apartment – An individual unit in a multi-unit building. The boundaries of   the  apartment  are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story Apartment        Buildings.

Multi Story Apartments  or House – Often  seen in multi-story detached buildings, where each floor has one or more separate apartments or units.

Condominium– Building or complex, similar to  apartments,  owned by individuals. Common grounds  and  common  areas  within  the complex are owned and shared jointly. There are townhouse or row house style condominiums as well.

Co-operative– A type of multiple ownership in which the residents of a multi-unit housing complex own shares in the cooperative corporation that  owns  the property,  giving each  resident the  right to    occupy a specific apartment or unit.

Real Estate in India

Today Real Estate has become a Full Fledged Industry rather than a mere Buying-Selling  business of properties , where there were no set systems and deals mostly happened in close circles or on faith.

Over the years things have changed drastically and Real Estate has also become a full  fledged  industry  with  lot  many  norms ,     systems & Regulatory        Bodies in place. It is becoming more and more systematic with the passage of time, now even Real Estate Regulatory Bill   has come,       which       will be big step towards making it totally Systematic &       Regularized.

As per study conducted by NAREDCO-KPMG , there will be a requirement of around 11.6 Crore houses in India by 2022 requiring a total outlay of 9 Lac Crore, which is currently approx 3.2 Crores Houses & Capital Outlay of Rs.  6 Lacs Crores Plus as of now. 

This shortage is/will primarily be in affordable housing segment here too of EWS, LIG & LMIG Housing. So these figures speak of potential of this line. Seeing the potential more & more people are venturing in this line.

History Of Real Estate

History of Real Estate dates back to as early as 334 BC. After this it has passed through many of historical milestones before reaching where it is today.

It has been a long and tiring journey for this industry. It has seen many ups & downs. It has survived the Great Depression earlier in last century.

From being a totally unorganized sector, it has emerged as  a full fledged & highly organized industry. Today it employs millions of people worldwide in its various verticals , be it development , construction , marketing, management & so on.