OPPORTUNITIES IN

REAL ESTATE

TRINITY UNIVERSITY OF ASIA
COLLEGE OF BUSINESS ADMINISTRATION

LECTURE: PREM 102 CLASS,

2 SEMESTER, SY 2017-18
ND

JANUARY 20, 2018

GEORGE A. PIMENTEL
THE REAL ESTATE
INDUSTRY
1. In law, real estate refers to land and everything attached to it. Ownership
extends below to the center of the earth and above to the heavens, of course,
taking into consideration the air rights. Distinguished from personal property.
Same as realty.

2. In business, the activities concerned with ownership and use including

transfers of interests of the physical property. Example: The following are
engaged in real estate business activities: accountants, attorneys, appraisers,
brokers, counselors, government regulators, loan brokers, mortgage lenders,
real estate service practitioners.
 REAL ESTATE
Real Estate creates value by developing land or land with
attached structures to sell or to lease or by selling real estate
parcels and interests. The opportunities that the real estate
provides are the employment, income and the multiplier
effect it created. The real estate industry employs
developers, architects, designers, landscapers, engineers,
surveyors, planners, skilled workers, lawyers, market
researchers, financial analysts, real estate service
practitioners, accountants, construction workers, sale and
leasing personnel, managers, office support workers, and
building and ground maintenance workers.
USES OF REAL ESTATE

 1. Business
 2. Office
 3. Manufacturing
 4. Housing
 5. Poultry & Livestock Raising
 6. Farming
 7. Recreation
 8. Worship
 9. Memorial
 FUNCTIONAL DIVISION OF REAL ESTATE BUSINESS

1. Real Estate Services

a. Consultancy c. Appraisal in the Private Sector

b. Brokerage and Sales d. Appraisal in the Government Sector

2. Real Estate Management

3. Real Estate Finance

4. Real Estate Syndication

5. Construction and Development

6. Ancilliary Services
a. Urban Planning c. Surveying
b. Architecture d. Insurance

Based on Eustaquio B. Jorge and Jesus N.Nuque, The Real Estate Industry in Focus, Phoenix Press, 1980
 FUNCTIONAL DIVISION OF REAL ESTATE SERVICES

1. Real Estate Consultancy 5. Real Estate Management

a. Real estate investment studies. a. Property management
b. Preparation of feasibility studies. b. Leasing
c. Rentals
2. Real Estate Appraisal and Assessment
a. Real estate valuation. 6. Ancilliary Services
b. Real assessment services. a. Urban planning
b. Surveying
3. Real Estate Finance c. Architecture
a. Origination d. Insurance
b. Loan syndication e. Bookkeeping
c. Real estate investment and trust. f. Legal
g. Tourism
4. Construction and Development h. Catering
a. Project Development i. Education and Training
b. Build and Sell
 FUNCTIONAL DIVISION OF REAL ESTATE SERVICES

7. Real Estate Brokerage and Marketing

a. Brokerage
1) General (dispersed approach)
2) Specific (focused approach)
a. Foreclosed or Bank Acquired Assets
b. Resale
c. Raw land

b. Project Selling
1) As to Geographical Location
2) As to Cost
a) Socialized d) Middle-End
b) Economic e) High-End or Open Market
c) Low-cost
3) As to Type
a) Horizontal
b) Vertical
4) As to Developer

c. Real Estate Auction

 With the development of private property ownership, real estate has
become a major area of business, commonly referred to as commercial
real estate. Purchasing real estate requires a significant investment, and
each parcel of land has unique characteristics, so the real estate industry
has evolved into several distinct fields. Specialists are often called on to
valuate real estate and facilitate transactions.

Real estate businesses include:

Development: Improving land for use by adding or replacing buildings
Net leasing[7]
Property management: Managing a property for its owner(s)
Real estate marketing: Managing the sales side of the property business
Real estate investing: Managing the investment of real estate
Appraisal: Professional valuation services
Brokerage: A mediator who charges a fee to facilitate a real estate
transaction between the two parties.
Relocation services: Relocating people or business to a
different country
Corporate Real Estate: Managing the real estate held
by a corporation to support its core business—unlike
managing the real estate held by an investor to
generate income
Within each field, a business may specialize in a
particular type of real estate, such as residential,
commercial, or industrial property.
In addition, almost all construction business effectively
has a connection to real estate. Professional university-
level education in real estate is primarily focused at the
graduate level. Focus in towards the commercial real
estate sector, primarily real estate development or
investment rather than residential real estate sales
conducted by a real estate broker.

Within each field, a business may specialize in a

particular type of real estate, such as residential,
commercial, or industrial property. In addition, almost all
construction business effectively has a connection to real
estate.
Attached / multi-unit dwellings:
Apartment - An individual unit in a multi-unit building. The
boundaries of the apartment are generally defined by a perimeter of
locked or lockable doors. Often seen in multi-story
apartment buildings.
Multi-family house - Often seen in multi-story detached buildings,
where each floor is a separate apartment or unit.
Terraced house (a.k.a. townhouse or rowhouse) - A number of single or
multi-unit buildings in a continuous row with shared walls and no
intervening space.
Condominium - Building or complex, similar to apartments, owned
by individuals. Common grounds are owned and shared jointly.
There are townhouse or rowhouse style condominiums as well.
Cooperative (a.k.a. "co-op) - A type of multiple ownership in which
the residents of a multiunit housing complex own shares in the
cooperative corporation that owns the property, giving each resident
the right to occupy a specific apartment or unit.
EMPLOYMENT AND INCOME OPPORTUNITIES IN REAL ESTATE SERVICE

1. Increase in demand for the services real estate service practitio

more real estate consultants, appraisers, assessors, real estate br
persons will be needed in both the government and the private

a. Government Sector – Positions in the government service re

of a real estate service practitioner shall be filled only by reg
real estate service practitioners (Sec. 30 of RA 9646).

b. Private Sector
1) No partnership or corporation shall engage in the busine
unless it is duly registered with the SEC and the person
the partnership or corporation are all duly registered a
brokers, appraisers, consultants, as the case maybe a (S
2) Divisions or departments of partnerships and corporatio
marketing or selling any real estate development projec
of business must be headed by full-time registered and
brokers (Sec. 32 (b) of RA 9646).
EMPLOYMENT AND INCOME OPPORTUNITIES IN

4) An increase in demand for trainors and lecturer

Professional Education (CPE) to serve the needs
service practitioners in compliance with the PRC

5) An increase in employment and income opport

estate. A number of schools will soon offer real e
more teaching jobs.

6) An increase in the demand for services in the a

in the demand for services for real estate service
need for services for other specialists such as law
architects, information technologists and suppor
 Agriculture, • Agriculture
Hunting • Hunting
and Forestry • Forestry

• Mining & Quarrying

Industrial • Manufacturing
Gross National Sector •
•
Construction
Electricity, gas and water
Product
• Transport
• Communications and Storage
• Real estate and ownerships of
Services dwelling
Sector • Personal and private services
(business, educational, hotels
and restaurants
• Public services
 Gross National Product

Agriculture

Service
Industrial

Agriculture
Industrial
Service
 Real estate buying,
selling, renting, leasing
Real and operating of self-
Estate owned/leased
Activities apartment/buildings,
non-residential
with Own buildings and dwellings
or Leased
Property Real estate buying,
developing and
REAL subdividing real estate
ESTATE Real
into lots and selling, etc.

INDUSTRY Estate Development and sale of

land and cemetery lots
Activities and operation of
on a Fee apartelles
or
Buying, selling, renting,
Contract managing, and
Basis appraising real estate on
a fee or contract basis

Source of Data: Phil. Standard Industrial Classification (1994)

Construction

Real Estate
Industry
 The success or failure of these uses is dependent on many
interrelated factors:

economic conditions
 demographics, transportation
 management expertise
 government regulations and tax policy
 climate
topography

Real estate development is sensitive to fluctuations in the

economy and in turn contributes to those cycles. The combination
of a capitalist economy and a growing population makes the
expansion of land uses inevitable, but developers can misjudge the
market and produce too many office buildings, hotels, apartment
buildings, or houses in any particular area. As a result rents and
sale prices fall.
THANK YOU
REVIEW QUESTIONS

 1. REAL ESTATE CREATES VALUE


 (A) by developing the land
 (B) by selling or leasing real estate parcels and interests.
 (C) by developing a structure on the land
 (D) by introducing new improvements on the land.
 (E) all of the above
 2. Real estate includes


 (A) land and everything on it.
 (B) personal property
 (C) land and everything attached to it.
 (D) land except the natural wealth on it.
 (E) None of the above
 3. Multiplier effect refers to


 (A) the resulting rise in income.
 (B) the unemployment it created.
 (C) the resulting fall in income.
 (D) the multiplier effect in reverse it created.
 (E) None of the above
 4. The real estate is characterized as


 (A) universal in need
 (B) high multiplier effect
 (C) as a hedge against inflation
 (D) appreciates in value
 (E) all of the above
5. Any vacancy occupied by the real estate service
practitioner in the government sector must be filled up
by:

 (A) a civil service eligible.
 (B) a staff assistant appointed by the head of the
 institution.
 (C) duly appointed by the President of the
Philippines.
(D) duly licensed real estate service practitioner.
 (E) None of the above.
 6. The opportunities in real estate is mainly


 (A) income opportunity is rising.
 (B) more employment opportunities.
 (C) high-multiplier effect.
 (D) higher demand for real estate service
 practitioners.
 (E) All of the above.
7. A division or department of a corporation engaged in
selling real estate must be headed by:


 (A) Licensed real estate consultant.
 (B) Licensed real estate appraiser.
 (C) Licensed real estate broker.
 (D) Accredited real estate salesperson.
 (E) All of the above
8. Real estate is a critical cog in the Philippine economy
because


 (A) all businesses need a piece of it.
 (B) some firms can proceed with objectives without
 real estate.
 (C) its contribution to the national coffer is measly.
 (D) controlled by the government
 (E) None of the above
 9. The employment opportunity for the real estate
trainors, lecturers and professors in not caused by


(A) requirements by PRC for all real estate practitioners to
 undertake Continuing Professional Education.
 (B) graduates of a real service course is a must for those who
 wish to enter real estate service beyond July 2011.
 (C) real estate trainors, lecturers and professors are in great
 demand for lack of them.
 (D) services of trainors, lecturers and professors in real estate
 can easily be filled up by any licensed real estate service
 practitioners.
 (E) None of the above.
