Real estate underpins the operation of the economy; it is a store of
wealth. For many households, their most significant asset is their
home, while institutional funds are increasingly targeting
commercial real estate. All firms need real estate as the base for
their productive activities. It is a key input in the production and
distribution of goods and services. Factories, warehouses, offices
and shops facilitate the operation of the economy. The well being of
society depends on the provision of adequate housing. Property
development shapes the structure of our towns and cities and the use
of land shapes the countryside. A full understanding of economy and
society demands an understanding of property markets.
1. Real Estate and the Economy
Real estate, both residential and commercial property, makes a key
contribution to the economy. It has a number of distinct features.
Real estate is fixed in location; no two properties are identical;
property has a long life; the development and purchase of real
estate is costly. Government plays a major role in regulating the
market through the planning system, taxation and environmental
policies. Decisions about real estate are complex and fascinating
and play a key role in the competitiveness of economies. Firms use
commercial real estate for their business operations. They must
decide how much space they need and where it should be located. They
must choose between renting and buying and, because land and
property is scarce, they must compete with other firms for
buildings. New supply of space depends on the decisions of
developers, banks and planning authorities. The operation of the
housing market determines household access to a decent home. House
prices have a major effect on family wealth, on inflation and on
consumer spending.
These key impacts on the economy and society lead to pressure for
Government intervention. Despite differences, there are common
economic and legal factors shaping both the commercial and the
residential markets.
2. Real Estate as an Asset for Investment
Real estate – whether commercial or residential – is an asset. The
vast majority of the net wealth of the world’s citizens is in the
form of property, principally housing. This household wealth
underpins spending in the economy, promotes stability and
contributes to the transfer of wealth from generation to generation.
Private Equity Investors, Venture Capital Funds, Pension funds,
insurance companies and professional investors hold major portfolios
of real estate in developed countries, a phenomenon now also visible
in the Indian property market. Companies use their real estate
assets to raise capital to fund their business activities. The
spectrum of property investment vehicles has increased dramatically
in recent years as new products and vehicles have transformed the
market and allowed many more individuals to invest in real estate.
Real estate provides an alternative investment to equities and
bonds; bringing property into a portfolio may reduce the risks faced
by investors. Real estate investment is increasingly international
in nature: just as firms operate on a global stage, so do property
investors, constructing real estate portfolios that stretch across
countries and continents.
|
Real estate
investment is increasingly international in nature: just as
firms operate on a global stage, so do property investors,
constructing real estate portfolios that stretch across
countries and continents. |
3.
Real Estate as a Career Choice
As a result of the heightened complexities in and the nascent stage
of Indian Property Market, the study of real estate draws on many
disciplines: Real Estate appraisal & valuation, project analysis and
due diligence, economics; finance and investment, geography,
business management, property laws, planning & zoning, marketing &
leasing etc, applying insights from these subjects to help
understand how property markets function. Real Estate Professionals
with this mix of skills are vital if real estate markets are to
operate efficiently and deliver the range of objectives required by
real estate users, investors and developers. The IDS-NIREM
postgraduate diploma programmes are designed to provide graduates
with the necessary skills and knowledge to develop careers in the
real estate industry in its many facets. The real estate industry
offers a wide range of career paths. Our programmes aim to provide
the maximum flexibility and choice for individual students while
building a core set of skills and knowledge.
Our programmes cater for both students with no prior knowledge of
the real estate industry and those who have already worked in
property market – and wish to earn a degree in real estate in order
to expand and accelerate their career prospects in the fast growing
real estate sector. New entrants to the industry would be benefited
by the broadest choice of subjects and width of knowledge that our
programmes provide. Those who are already working in the sector will
be benefited by the core courses such as Real Estate Development,
Real Estate Valuation and Analysis, Appraisal of investment
proposals, Analysis of risks & returns, Market and Feasibility
Analysis, Marketing and Leasing of Properties among others that this
course offers. Therefore, whether it is analysis of commercial and
residential real estate markets for the purpose of tapping
prospective property buyers or it is formulation of commercial real
estate investment strategy to present before institutional
investors, you gain expertise in all important aspects of real
estate during our PG Diploma Programmes in real estate, which
ultimately open up many options for employment in the real estate
industry around the world.
