Property management deals with the management of personal, commercial or industrial real estate. The growing population, overall economic growth of the country, rising income levels and increased foreign investment has led to a heightened need for improved infrastructure across urban, semi-urban and rural India. The real estate industry in India is slated to be a 180 billion USD opportunity by 2020.
Real estate management
Property management deals with the management of personal, commercial or industrial real estate. They can be vacation properties, warehouses of some company or residential buildings.
The work of a real estate or property manager includes:
- Maintenance and routine cleaning of the property, while preserving its value
- Budgeting expenses of the property
- Managing renters and securing new ones with proper screening process and legal entailment
- Maintenance of all tax-related and other financial and legal records of the property
- Corrective maintenance or development of the property
- Working as a link between the seller and the buyer when real estate changes hands
What is the scope of real estate management education?
Shubika Bilkha: The real estate industry in India is slated to be a 180 billion USD opportunity by 2020 (Ibef August 2015 report).
What are the problems being faced by real estate?
SB: The real estate sector in India has typically been unorganised, fragmented and lacking in fundamental best practices.
The government’s impetus to boost urban development and meet the ‘Housing for All’ agenda, together with the forthcoming implementation of RERA (Real Estate Regulation and Development Act 2016) which increases the need for transparency and accountability on the part of builders or developers, while regulating the process of marketing or sale of properties, has heightened the need for skilled professionals across job functions in the sector.
The growing population, overall economic growth of the country, rising income levels and increased foreign investment has led to a heightened need for improved infrastructure across urban, semi-urban and rural India.
This increased demand for real estate, together with increased regulatory vigilance, is leading to an unprecedented manpower requirement in the space.
What skills are required for employees in this field?
SB: The ‘Top of the Pyramid’ manpower requirement can be categorized into three segments:
- Specialised professionals include valuers, quantity surveyors, facility managers and sustainable development experts
- Core professionals include engineers, architects and planners
- Non-core professionals include management/business administration/chartered accountants/finance analysts, lawyers and electrical engineers
The supply of core and non-core professionals remains low currently as compared to the soaring demand. The current shortfall of core professionals is estimated to be around 4 million.
The total expected shortfall of skilled professionals in the Built Environment is estimated to be around 150 million by 2022 (IMaCS, Aon Hewitt and NSDC).
What is the impact of manpower shortage in the real estate space?
SB: The impact of manpower shortages in the space results in:
- Skill gaps, as the existing recruits do not have the requisite skills required to complete tasks efficiently
- Sub-standard quality of construction
- Lower production levels and delays in the completion of new projects
- Difficulties in recruitment and retention
- Increased cost of human resources, that has an adverse impact on development costs and the profitability of operations
- A reduction in consumer confidence as a result of non-qualified or non-certified sales or property agents, who may not have the requisite understanding of the processes, documentation and regulations involved
SB: We have established REMI– The Real Estate Management Institute, in collaboration with IREMÂ®– The Institute for Real Estate Management, USA to increase the supply of skilled professionals and address the existing skill gap in the sector.
- The institute looks to facilitate individual careers in real estate, as well as enhance leadership for existing real estate professionals and serve as a cornerstone for building a better future
- REMI’s programmes have been designed in line with the requirements of the industry as comprehensive ‘Job Ready’ programmes, including certification programmes, executive programmes and industry workshops designed to meet the needs of new entrants and existing professionals across the real estate industry
- We provide both technical and business training in our classrooms through certified faculty and industry experts, as well as have students/professionals undertake hands-on industry training as a part of our programme
- Our certification programmes involve 3-4 months of in-class training with a 3-month internship at one of our 100+ corporate associations. We believe that this format of classroom, as well as industry training provides students with a hands-on learning experience and is most suited to meet the requirements of the real estate industry
- Our Continuing Professional Development (CPD) programmes are short-term programmes specially designed for existing professionals, brokers and developers. With the real estate sector being extremely dynamic and constantly evolving, it is essential that experienced professionals continually skill and re-skill to stay abreast with the latest industry developments in order to distinguish themselves and their businesses
- It is a ‘job ready’ comprehensive programme designed for students, early-stage professionals, entrepreneurs, next generation developers and brokers, developed in conjunction with the industry and IREM, USA
- The programme covers key technical topics such as advanced concepts and terminologies in real estate, key calculations including the development of a cost sheet and layout, real estate legal documentation, the construction process, the approval process, SRA and redevelopment, introduction to project management and facilities management
- The programme also enhances the participant’s business skills through marketing and sales modules for residential, commercial and retail properties, soft skills and business skills training, an entrepreneurship module and a digital marketing module
- The programme also includes field visits, visiting lectures from industry experts, an industry project and internship and placement assistance through REMI’s dedicated ‘Career Development Cell’
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