In 1960, only 18 percent of India’s population lived in cities. Fast forward to today, and the figure stands close to almost 40 percent, i.e., more than 449 million people. Today, India has one of the biggest urban populations in the world, second only to China. It is estimated that by 2050, this figure could be more than 814 million people, which is larger than the total population of Indonesia, USA, and Brazil combined.
In India, over a few decades, factors such as growing size of business unit, separation of ownership from management, growing competition etc. have led to an increased demand for professionally qualified work resource.
The trend in the real estate and construction sector is now shifting from traditional family management to professional management. Even the members of business families are acquiring formal education. Even if trained work resources are employed, the decision-making powers remain with the members of the family.
A major portion of our economy is unorganized. The reasons behind this are smaller scale of operations, local ownership, uncertain legal status, labor-intensive methods, exorbitant pricing, absence of a brand name, and inadequate access to government schemes. Employees of enterprises belonging to the unorganized sector have lower job security and poorer chances of growth. They have lower protection against employers indulging in unfair or illegal practices.
The changing business scenario and severe competition from international business is compelling Indian businessmen in the sector to go for genuine professionalization of management for survival. Therefore, the trend towards professionalization of management in India is rapidly increasing.
As the sector is moving rapidly into new markets such as smart cities and data centers, the local expertise could become limited. This is because the demand rate keeps increasing at the current pace. While there is a clear pipeline of trained professionals to tackle these challenges effectively, there is also a lack of available talent.
This could result in hindering economic growth and prevent the development of local innovation sectors. At the same time, constant technological advancement is the goal of Real Estate experts as it helps in saving time and effort while providing better output.
Hence, the industry demands professionals who are willing to adapt and act innovatively in an ever-evolving atmosphere. Here again, quality education comes into the picture that helps develop certain skills of aspirants so that they can act informatively to the unprecedented technological evolution that this sector is witnessing.
In no other field is the power of a sound education more pronounced than it is in the real estate industry. While one could very easily argue that no viable career path is possible without at least some degree of literacy, a legitimate Real Estate education has tremendous potential to serve as a catalyst for the transformation of the sector. Few career paths, for that matter, have as much potential as Real Estate investing; even fewer allow their most prominent influencers to rise through the ranks, armed with nothing more than a little determination and an educational foundation to stand on.
Investors really stand in need of one thing, if they ever hope to realize success on a higher level, and that is a proper Real Estate Education. With a solid foundation to build on, everything else should fall into place.
For example, while undergoing MBA in Real Estate and Urban Infrastructure at RICS SBE, one can get in-depth exposure to real-life business problems in the classroom. The students get familiarized with technical and managerial aspects so they can innovatively resolve problems in the very first instance. In the practical world of the Real Estate and construction industry, knowledge about specific technical disciplines is required, like construction, real estate law, marketing, sales, leasing, finance, property management, accounting, taxes, and architecture. As a developer they will either be required to provide their expertise, or supervise experts who have these technical skills. If they lack at least a working understanding of each of these areas, they cannot be successful real estate developers.
Most people get into this profession by becoming experts in one of the disciplines described above. Some of these disciplines, such as law or architecture, require a college education. The rest of them, however, can be learned through on-the-job training.
To summarize, the Real Estate Industry grows with professionals and professionals grow with quality education.
Hence, if we want to see the Real Estate Industry as one that is professionally compliant, then we need to take a step towards ensuring that aspirants pursue a specialized education from a worthy college, and afterwards keep abreast with the latest developments in the field, through short term training and the like.
Undoubtedly, education is a way towards an excellent future – a better tomorrow belongs to those who prepare for it today. This stands true for any industry.
Earlier, specialized education for the built environment sector did not exist in India, but RICS – Royal Institution of Chartered Surveyors realized its importance and introduced specialized programs in Real Estate and construction management. RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction, and infrastructure.
The work of RICS professionals is hugely varied. RICS regularly announces steps to improve the experience of professionals in the industry while championing diversity and inclusion. Following RICS legacy, RICS School of Built Environment offers specialized BBA and MBA programs to Indian students that help aspirants gain specific knowledge and act professionally in the field.
Establishing a sound Real Estate Education is by far one of the most defined ways to build a professionally compliant Real Estate Industry. A working knowledge of the industry and all of its components, along with adherence to defined rules and guidelines will ensure that the industry is heading in the right direction to become a professionalized corporate sector!