Real Estate Industry - Research Paper Example

The term real, in law, is defined as relating to a thing as distinguished from a human being. The law, therefore, gives a broad distinction between personal property and real property (Singh & Komal, 243). People use real estate for different purposes such as recreation, offices, manufacturing, retailing, housing, farming, ranching, entertainment, and worship. The failure or success of these uses depends on many interconnected factors such as government regulations demographics, economic conditions, transportation, tax policy, and management expertise, topography, and climate.

Real estate industry proprietors’ goal is value creation through developing land to either lease or sell or by marketing interests and parcels of real estate. The industry employs such professionals as surveyors, architects, financial analysts, managers, designers, developers, landscapers, abstractors, engineers, appraisers, attorneys, market researchers, leasing and sale workforce, construction workers, grounds and building maintenance workers, office support workers, among others (Dictionary of American History, 1).

With the advancement of possession of the private property, real estate has become a key business area. . Others include business or people relocation services; brokerage; and real estate marketing, which entail the management of the sale facet of the property business (Singh & Komal, 243). In any economy, the real estate industry is watched closely because it embodies a considerable amount of capital investment form (Gurjar, 1). Fundamental issues of the real estate industry Currently, the industry is developing by means of smaller players’ organic growth in addition to big conglomerates’ entry.

Traditionally, the management of real estate developed from the “service provider” and the “developer” to a more inclusive sector that has four major operational areas. The first area is planning to consist of such services as a selection of the site, viability studies, concept design, and architectural services among others. Next, there is construction, which consists of activities that entail construction and the management of the construction; followed by services and maintenance, which mainly entail property and facilities maintenance and renovation activities and offering such services as issue management, air-conditioning, canteens, security, among others to them.

The fourth operation area of real estate is disposal, involving various measures of disposal such as sale, quarantine, among others for the real estate property, and sometimes, it could be very complex (Gurjar, 1). Generally, these four operation areas spread over three basic business segments namely industrial, commercial and residential businesses. One can invest in all these areas and make a profit by commercial and lease use, rental income, capital appreciation, and agricultural produce (Singh & Komal, 244).