The real estate market is also known as the property market which is mainly associated with the buying and selling of land and buildings. Real estate is a piece of land or property made up of buildings as well as the natural resources including uncultivated flora and fauna, farmed crops and livestock, water, and any additional mineral deposits. It can serve as a constant source of income and employment. Investors enjoy excellent rates of return, tax advantages and owning a real estate can help in building the individual’s wealth.
The construction of commercial houses, residential housing, and business spaces, such as hotels, restaurants, theatres, and industrial buildings, namely factories and government buildings, are all covered by the real estate sector. It caters to the demands of recreation, income, and employment.
The business sector or corporate sector is a part of the economy that is composed of companies. It is the section of economy-related to business and corporate organizations. The business sector excludes individual households, government or not-for-profit organizations. The business sector is responsible for production. It helps in creating resources for production. In most countries, the business sector covers a fairly large portion of the economy and GDP. For example in the United States, the business sector accounted for about 78 percent of the value of the gross domestic product (GDP) as of 2000. Kuwait and Tuvalu each had business sectors accounting for about 40% of GDP as of 2015.
The real estate sector has experienced growth at a rapid pace. The market has been able to provide enormous growth potential for both commercial and residential buyers. In the present times, the ever-changing corporate environment fuels its growth in both Tier 1 and Tier 2 cities. Both types of cities are witnessing an increase in demand which is more significant for better office spaces by national and multinational enterprises. On the other side, the last decade has presented a rapid development in the corporate world. It has changed the way people view and experience the world of business.
Both trade and business are under the influence of information technology, enhancement in efficiency and productivity. The improvement in productivity facilitates swift and accurate production in large volumes, leading the Indian commercial sector to benefit from advancement in information technology. The real estate market has an important role in building revenue growth of businesses. The real estate market has shaped the business sector in many ways. Some of which include the following:
Growth of Residential and Commercial sector
In 2020, there is great potential for both residential and commercial real estate business. In recent years, office space gained traction in most cities. Many investors prefer office space on rent or lease. It is because the profits left after paying all the bills allow them to think of their business expansion and goals The warehousing sector also gained traction. Movement of people from rural to urban areas has triggered the growth of the business sector. Rapid urbanization and white-collar migration will ensure strong growth for the commercial sector, which in turn will translate into higher residential demand. Initiatives like ‘Housing for All’, has brought the mid-income housing and affordable housing sector to the foreground. This concept of affordable housing will continue to be the key growth driver.
More traction for Sub-urban cities
Markets such as Pune, Chennai, Hyderabad, and Bangalore have seen a steady rise in demand for homes and according to the survey conducted, this trend is set to continue in 2021 as well. The affordable housing segment can create huge demands in secondary markets such as Goa, Coimbatore and so on.
Importance of technology
The key players must adapt to the latest technology such as data gathering, artificial intelligence and machine learning which will play a key role in redefining the real estate and business sector in India. The improved and latest technology can help in speeding the construction process which in turn can increase the profit and sales. Smart homes will continue to be the choice of customers. The Indian smart home market is currently valued at about $893 million and is expected to grow by leaps and bounds in the next five years. This year will be a ground-breaking year for organizations heading towards modernization in tech-enabled services.
Budget management plays a key role
Most people are aware that investors generally prefer office spaces on rent or since the profits left after paying all the bills to allow them to think of their business expansion and goals. A real estate developer can find a solution and thus, builds strategic services that can be helpful for business growth. The budget management with the real estate sector has helped business owners to plan wisely for their future goals. It makes entrepreneurs and business owners estimate the savings in advance.
Power of networking
Competition for professional locations has increased. It has made new investors have a strong and experienced team in place to help them recognize their vision and to execute their plans. The real estate world has strengthened brokers and managed property dealing quite well to do businesses prepared for a more competitive market environment. Businesses are coming with significant transformations. Established businesses always relocate to a destination with their target audiences in large numbers.
A Scope for Employees
Research must be done well before locating the office in an area that employees find attractive. Many real estate developers have attained successful results by providing commercial space to their clients that can bring a lot to them through the cultural environment and comfortable surroundings.
Ease of access is of prime importance to employees. Thus, the real estate market is rapidly growing, intending to fulfill the business goals at first. The background of particular real estate firm matters, and thus, many are accomplishing what entrepreneurs look for their businesses.
As reported by the Indian Brand Equity Foundation, the real estate sector in India is expected to reach a market size of US$1 trillion by 2030 and contribute 13 percent of the country’s GDP by 2025 which will have a positive impact on the business sector. The real estate market has an enormous influence on the business sector and it plays an important role in shaping it.