Growth in Real Estate Sector is Proportional to Total Number of Houses Sold
Real Estate Myth #III: Real Estate is an Ascendable Business
Sharing the website link of an interesting story takes not more than a second. Also, it requires nothing more than an internet connection and a sharing app on your phone. Every other click on the portal will add value to its online as well as offline prestige. Is this the same for real estate sector as well? Does every sale contribute to the business growth? At least from the periphery, it looks this way while the fact is absolutely the opposite.
Talking about the truth of the real estate business, every transaction leads to the scaling down of options available for sale. This, in turn, can affect the growth of the business in the long term. It takes a long time to recharge the inventory for the future development of a business. In addition, the load of capital in real estate is higher than most of other businesses.
“Real estate is an extremely complex sector which is full of a horde of activities. A businessperson has to engage in these activities and be highly animated in order to boost the scalability of this line of work,” says Jayesh Dave, Managing Director of Jayraj Group of companies, a Vadodara-based real estate giant.
Like Mr Dave, a number of real estate business people also have similar opinions regarding the scalability of this sector. Every new project in real estate is about beginning from the very start. Each of the new project comes with a different set of twists and turns, leaving industrialists with only a few ways to succeed — having a specialized adeptness and experience.
A number of real estate assignments getting failed after reaching a high every year is also giving boost to the fact that property development is a scalable business. Despite the truth that real estate has created a huge amount of profit, its scalability has always remained low.