Real Estate Industry in UK

Posted on: February 27 2020, By : Drishti Khimshia
Real Estate Industry
Real Estate is an essential part of life. We live, work, learn and spend our leisure time in building. The vast majority of the UK’s buildings are private homes. The remainders are made up of commercial real estate and other non-domestic buildings. This industry focuses on the commercial real estate element in the UK. Commercial real estate produces a financial return for its owner, usually in the form of rent. It includes office, retail, industrial, leisure, medical and hotel properties, and residential property in what is known as the private rented sector. Real Estate Recruitment Agency in London keeps a track of what is the requirement.

Real Estate is a significant feature of the economy of the UK, and regulated according to English Land Law. The real estate market in the UK is the largest or second-largest in Europe depending on the method of measurement. The commercial real estate market in the UK has a market size of around 250 billion euros. Domestic real estate represented the largest non-financial asset in the UK, Foreign investment plays a substantial invested around 20 billion euros in UK real estate. The property recruitment agencies in London are aware about the market of real estate.

Investing in real estate is the catalyst for urban regeneration and renewal. It generates social capital and creates happier, healthier and more sustainable places in response to our changing lifestyles. Most commercial real estate is owned by companies (REITs and other property companies), and by those who invest in pension funds, private equity funds and other forms of investment. Property investment recruitment agencies in London guide the customer well.  

UK has a booming online real estate market which is dominated by portals which list properties for buyers and sellers and work with agents, charging them for their inventory. While the online real estate landscape has been changing over the years, new models have been introduced which focus on a free approach, not charging agents anything for listing but making money from selling add-ons and leads. There are specialist property recruitment agencies in London who are doing online business also. 

UK’s real estate portals are pushing the boundaries by adapting to the latest technological advances. Virtual reality, which is more prominent in video games, was accommodated by real estate listing portals to highlight the possibility of touring properties remotely. UK real estate developers even started to allow customers to walk-through apartments even before they are built. Real Estate Recruitment Agencies in UK are well aware about the new technologies used.

The real estate industry encompasses the many facets of property, including development, appraisal, marketing, selling, leasing and management of commercial, industrial, residential and agricultural properties. This industry can fluctuate depending on the national and local economies, although it remains consistent due to people who need homes and businesses always need office space. The property recruitment agencies in UK manage all the sectors necessary for real estate. 

Types of Real Estate:
There are several types of Real estate, each with a unique purpose and utility. The main categories are: 
1. Land: Land is the baseline for all types of real property. Land typically refers to undeveloped property and vacant land. Developers acquire land and combine it with other properties and rezone it so they can increase the density and increase the value of the property. 
2. Residential: Residential Real Estate consists of housing for individuals, families or groups of people. This is the most common type of real estate and is the asset class that most people are familiar with. Within residential, there are single-family homes, apartments, condominiums, townhouses, and other types of living arrangements.
3. Commercial: Commercial property refers to land and buildings that are used by businesses to carry out their operations. Examples include shopping malls, individual stores, office buildings, parking lots, medical centers and hotels.
4. Industrial: Industrial real estate refers to land and buildings that are used by industrial businesses for activities such as factories, mechanical productions, research and development, construction, transportation, logistics, and warehousing.

Overview of Real Estate Industry 

The real estate industry can be divided into several different areas:
1. Development: It is a process that involves the purchase of raw land, rezoning, construction and renovation of buildings, and sale or lease of the finished product to end users. Developers earn a profit by adding value to the land and taking risk of financing a project. The development firms create a new product, which can be thought of as the “primary market” or generation of new inventory.
2. Sales and Marketing: These firms work with developers to sell the buildings and units they create. These firms earn a commission for creating all marketing material and using their sales agents to sell the inventory of completed units. These firms typically focus on new units. 
3. Brokerage: A real estate brokerage firm that employs a team of real estate agents (realtors) who help facilitate a transaction between the buyers and sellers of property. Their job is to represent either party and help them achieve the purchase or sale with the best possible terms. 
4. Property Management: These firms help real estate owners rent out the units in their buildings. Their jobs include collecting rent, showing units, fixing deficiencies, performing repairs, and managing tenants. They charge a fee, typically a percentage of the rent, to property owners.
5. Real Estate Lending: Lenders play a major role in industry as virtually all properties and development use leverage to finance their business. Lenders include banks, credit unions, private lenders and government institutions. 
6. Professional Services: A variety of real estate professionals who work in the industry and help make it function. Most common examples are accountants, lawyers, interior designers, stagers, construction workers and trades people.
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