Which MBA course is best for real estate?
The real estate sector is one of the most recognized sectors
across the globe. It comprises four sub-sectors- housing, retail, hospitality,
and commercial.
Indian real estate sector is the second-highest employment
generator, following the agriculture sector. It is also expected that this
sector will incur more non-residential Indian (NRI) investment, both in the
short and long term.
By 2040, the real estate market will grow to Rs. 65, 000 crore
(US$ 9.30 billion) from Rs 12, 000 crore (US$ 1.72 billion) in 2019. The Indian
real estate sector is expected to reach US$ 1 trillion in market size by 2030
from US$ 200 billion in 2021 and contribute 13% to the nation’s GDP by 2025.
Students entering the sector today have a plethora of career
opportunities in front of them as the real estate sector in India has witnessed
high growth in recent times with rising office demands as well as residential
spaces. Institutional investments in this sector are expected to increase by 4%
to reach Rs. 36, 500 crores (US$ 5 billion) in 2021, driven by the rising
interest of investors in capturing attractive valuations amid the COVID.
But to become a leader in the real estate sector, you need
numerous skills and qualities to make a difference. The industry demands
techno-managers who can solve the issues and lead the team showing leadership
qualities. And to become a leader you need something extraordinary.
So, which MBA programme is best for you?
There are bountiful opportunities for students who pursue
MBAs in Real Estate. To tap into the opportunities the globe has to offer, some
institutions offer specialized MBAs in Real Estate; and the best programme
looks closely at the intersection between real estate, finance, and
investments.
After completing the programme, jobs can range from a
corporate real estate broker to a property investment executive.
Master of Business Administration in Real Estate is a
professional postgraduate course. In this course, students are trained for real
estate markets, developments related to real estate and marketing of various
real estate projects. The programme imparts leadership and decision-making
skills to real estate and urban infrastructure aspirants. The 2-year course is
divided into 4 semesters.
There are numerous career options after graduating from this
course in the field of real estate sector and urban development. Conglomerates
such as DLF, Omaxe etc. await candidates with sharp property enabled skills to
come and work with them. Job profiles like valuation, investment and finance,
property development and management etc.
The programme provides dynamic knowledge of the real estate
and property market industry. It prepares students with decision-making skills
to face the issue the industry has to offer along with designing an outcome for
them based on concepts drawn from the subject.
It acts as a pro-version for providing optimal strategies
and plans and letting one focus on outcomes with development and target-oriented
work. It enables the students to work out the sector in a more organized and
project-specific way.
Individuals who want to make a great career in the real
estate sector and are oriented toward the urban development sector must go for
management courses. If you can think based on data and analyze the scenarios
and take an apt decision. Also, if you have a property-oriented mind and think
analytically with your brain inclined towards reasoning and understanding of
outcomes, then this programme is for you.
MBA in Real Estate & Urban Infrastructure
MBA in REUI from RICS SBE, Amity University helps graduates
learn the business and commercial aspects of the industry by combining their
technical skills garnered during their graduate programmes with business and
commercial skills, which transforms them into potential business leaders that
the industry is looking forward to.
At present, every industry is looking for techno-commercial
managers, who can implement technical aspects successfully while understanding
the business implications.
RICS SBE students are nurtured to become future corporate
leaders as they traverse their career paths by getting in-depth exposure to
real-life business issues in the classroom while being guided by faculty with
significant industry experience.
The students are well-trained to resolve any issues by
applying all business management aspects i.e., strategy, marketing, finance,
legal and technical aspects, taxation, information technology and human
resource management.
Moreover, students are trained on RICS Pathways and
Competencies and imbibe skill sets that equip them for becoming productive in
workplaces from day one of their jobs, without any significant need for
training.
The MBA in REUI prepares students for the entire project
life cycle of real estate enabling them to take up diverse job roles with real
estate developers, international property consultants, banks & financial
institutions, valuation companies or any corporate since real estate is an
essential component of any business.
Today, MBA in REUI graduates are working in senior and
mid-senior roles with top global firms. You can too.
The real estate sector is one of the most globally
recognized sectors. The growth of this sector is well complemented by the
corporate environment growth along with the demand for office space and urban
and semi-urban accommodations. The construction industry ranks third among the
14 major sectors in terms of direct, indirect, and induced effects in all
sectors of the economy.
Indian real estate sector is the second-highest employment
generator, following the agriculture sector. It is expected that the real
estate sector will incur more non-residential Indian (NRI) investment, both in
the short and long term.
It is also estimated that by 2040, the real estate market
will grow to Rs 65,000 crore from Rs 12,000 crore in 2019. Moreover, the Indian
real estate sector is expected to reach US$ 1 trillion in market size by 2030,
up from us$ 200 billion in 2021 and contribute 13% to the nation’s GDP by 2025.
The real sector of India witnessed over 1,700 acres of land
deals in the top 7 cities in a year. Foreign investments in commercial real
estate were at US$ 10.3 billion from 2017-21.
According to the ICRA estimates, Indian firms are expected
to raise over Rs 3.5 trillion through infrastructure and real estate investment
trusts in 2022, as compared with raised funds worth US$ 29 billion to date.
Furthermore, as per Savills India, real estate demand for data
centres is expected to grow by 15-18 million sq. ft. by 2025.
In 2020, the manufacturing industry accented for 24% of
office space leasing at 5.7 million sq. ft. SMEs and electronic component
manufacturers leased the most between Pune, Chennai, and Delhi NCR, followed by
auto sector leasing in Chennai, Ahmedabad and Pune.
India’s gross leasing volume in the top 8 cities stood at
16.2. This was 12.4% quarter to quarter growth in 2021. India’s net absorption
of the office market stood at 11.56 million sq. ft. in quarter four of 2021.
This was an 86% rise in QoQ.
As per the Economic Times Housing Finance Summit, about 3
houses are built per 1,000 people per year compared with the required
construction rate of five houses per 1,000 population. The current housing
shortage in urban areas is estimated to be approximately 10 million units. An
additional 25 million units of affordable housing are required by 2030 to meet
the growth in the country’s urban population.
Investments in Real Estate Sector
The Indian real estate sector has witnessed high growth in
recent times with growing demand for office as well as residential spaces.
According to Colliers India, a property consultant, institutional investments
in the Indian real estate sector are expected to grow by 4% to reach Rs 36,5000
crores in 2021, driven by rising investors' interest in capturing attractive
valuations amid the pandemic.
As per the recent report by Colliers India, private equity
investments in Indian real estate reached US$ 2.9 billion in the first half of
2021, which was approximately a 2% increase from the first half of 2020.
Private equity investment inflows into the Indian real
estate stood at US$ 3.3 billion between January 2021 and September 2021.
Home sales volume across seven major cities in India surged
113% YoY to reach approx. 62,800 units in the third quarter of 2021, from
29,520 units in the same period last year, significantly health recovery post
the strict lockdown imposed in the second quarter due to the pandemic. And so
on.
Government Initiatives
The government of India along with the respective states'
governments has taken several initiatives to encourage development in the real
estate sector. The smart city project, with a plan to build 100 smart cities,
is a prime opportunity for companies.
In October 2021, the RBI announced to keep the benchmark
interest rate unchanged at 4%, giving a major boost to the sector in the
country. The low home loan interest rates regimes are expected to drive the
housing demand and increase sales by 35-40% in the festive season in 2021.
Under Union Budget 2021-22, tax deductions up to Rs 1,5 lakh
on interest on housing loans, and tax holidays for affordable housing projects
have been extended until the end of fiscal 2021-22.
The Atmanirbhar Bharat 3.0 package announced by the finance
minister in November 2020 included income tax and relied on measures for real
estate developers and homebuyers for the primary purchase/sale of residential
units of value from November 12, 2020, to June 30, 2021.
To revive over 1,600 stalled housing projects across top
cities of the nation, the Union Cabinet has approved the setting up of a Rs 25,
000 crore alternative investment Fund (AIF).
Furthermore, Government has created an Affordable Housing
Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of R 10,
000 crores using priority sector lending shortfall of banks/financial
institutions for microfinancing of the HFCs.
The Road Ahead
The residential sector is expected to grow significantly,
with the central government aiming to build 20 million affordable homes in
urban areas across the nation by 2022, under the ambitious Pradhan Mantri Awas
Yojana (PMAY) schemes of the Union Ministry of Housing and Urban Affairs.
Expected growth in the number of housing units in urban areas will increase the
demand for commercial and retail office space.
The current housing shortage in urban areas is estimated to
be approximately 10 million units. An addition of 25 million units of
affordable housing is required by 2030 to meet the growth in the country’s
urban population.
The increasing flow of FDI in the real estate sector is
encouraging increased transparency. Indian real estate is expected to attract a
substantial amount of FDI in the next two years with a US$ 8 billion capital
infusion by FY22.
So, you see there are a lot of career opportunities for the
students entering the sector today. To become a leader in the industry, you
require a set of skills and qualities. Industry demands techno managers to
shape the industry.
To have a high-paying career in real estate, you need a
specialized programme to cater to the industry’s issues.
MBA in Real Estate & Urban Infrastructure at RICS
SBE, Amity University
MBA in REUI is a great way to learn more about the real
estate market and how real estate can function as a type of investment. Not a
lot of colleges offer a concentration in real estate for MBA students, but RICS
SBE offers specialized dual accredited (RICS & PMI-GAC) degrees.
The specialized programme lets you gain a better
understanding of real estate and help you grow holistically. Individuals are
transformed into techno-managers with in-depth knowledge of the subject along
with leadership qualities to lead the team successfully.
RICS SBE students get the opportunity of building a
professional network. They gain access to professional networking
opportunities. The specialized programme is an amalgamation of theoretical and
experience-based learning. This helps develop the practical skills that will
make you more appealing to employers later.
Moreover, you will have a whole new look at investments. You
will learn how to weigh the pros and cons of each piece of property and how to
make investments on behalf of your clients. And last but not the least, it goes
without saying your earning potential will grow manifolds.
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