All of us know there are four types of real estate businesses and each one focuses and concentrates on a particular requirement and set of people.
Amongst all these, the commercial real estate has a greater role to play in the economic development of a country. The commercial real estate is nothing but the pieces of land and property provided for the construction of office buildings or other commercial buildings like malls, hospitals, and other essential services. This includes even hotels and restaurants. In short, any property or land acquired to produce income for the buyer is the commercial real estate.
Now the range gets bigger here including even the residential apartments that are built to make money.
To classify in detail, this type of real estate includes the following:
• Retails – this includes malls and other entertainment areas, restaurants and grocery shops. This is, in fact, the major portion occupied in the classification.
• Hotels – the need for visiting a hotel or restaurant has off late increased. There are many reasons for this. With the improvement in information and technology, the work schedules have become tougher and people hardly get time to visit the kitchens at home and hence try to reach out to the eateries at the meal timings. People try to take a break from the routine life by hitting the doors of the restaurants at weekends. All these have increased the demand for more space and eat outs and hence there is a drastic increase in the number of eateries in the recent past.
• Commercial space for work – here again, it is technology that has played the role. With improving and developing technology, the requirement for more establishments and office spaces has gone up very high.
• Apartments – with the increase in more employment opportunities there is an increase in the relocating population that needs to be accommodated somewhere. Here is where the real estates help these nomads in finding a residential space. Off late, there have been buildings and townships owned by companies mainly to provide space for their employees, especially the ones who are always on their wheels.
This is the scenario in all the countries and the real estate business is really growing at a faster pace.
It has a greater economic importance in the development and it is the main component of a country`s GDP.
When there is a requirement or a plan for a township, it can have people only when they find all their necessities and requirements coupled with the house. This pushes the builders to try occupying more space for bringing in shops and malls.
Now in the case of townships that are placed far from the city, the residents look out for other facilities like schools, transportation services, colleges, and hospitals. So this again requires the builder to look for a space for his project where he can find all these close by.
Even if these services are absent, they try to bring in these entire first and they try selling the houses to the people. So being a real estate agent is not a petty job and this you would have understood from the above detailing.
It is money that is getting transacted in huge numbers and hence people try to fulfill all their needs within the budget, especially when comes to buying a house.
Since it is a one-time investment, they try to settle down with one that has more benefits and facilities, at the same time is available for fair rates.
This commercial real estate business is greatly dependent on the commercial sectors. This industry though is now in the growing and booming stage has also had its share of hits and bits. It is generally said that it is only after a great fall that there would be a great boom following the fall. This holds good for all the sectors.
So a boom in the economic development will help in a growth in the real estate business and this will, in turn, improve the economic development further. They are inter-dependent.