This informal CPD article on Seek Your Career in Real Estate was provided by Veronica Bateman at Bayfield Training, a training company providing a wide range of Financial Modelling and Real Estate Strategy courses for the Global Real Estate Profession.
Why seek a career in Real Estate? An overview of the European market
Real estate is one of the biggest industries and is the world’s largest asset class (about 20% of the nation’s wealth is held in property). Additionally, commercial real estate generates 70% of the UK’s Gross Domestic Product (GDP). This means the career aspects within the real estate sector are safe, and there is potential to grow within the community. Real estate is an ever-changing business, to reflect the population’s needs. In Europe, the real estate industry is a prosperous market to be in as it attracts foreign investors due to its safe nature.
Types of companies in the Real Estate industry
There are many different areas to work in within the Real Estate industry. These include:
Property companies:
- Large businesses.
- The money they invest comes from the reserves the company has built up. They will invest the money into redeveloping properties, buying new companies and expanding portfolios.
Private equity companies:
- Private equity companies use money from external investors that have been pooled into funds to invest in the market.
- They agree with investors as to the percentage of returns they will share, and so they must achieve the business to be able to meet these agreements.
Family offices:
- Deal with high net wealth of individuals/families.
- Aim to find opportunities to increase their wealth through real estate investments.
Real Estate Hedge funds:
- Similar to private equity companies.
- As well as real estate, they invest in stocks, shares, and foreign exchanges.
Sovereign wealth:
- Handles the wealth of a nation or state.
Consultancies:
- Handle valuation, marketing and sales and surveying property.
- Many people work at consultancies to get project experience, build their network and experience how other companies work.
Banks:
- Lend the money for investments.
- Can start individual specialised mortgages for companies such as property companies, private equity companies or family offices.
Real Estate Developers:
- Increase value of properties by developing existing properties or knocking down the properties and rebuilding them using the space.
- Technical training is required through education/apprenticeships.
- Judgements about necessary repairs are made.
Service providers:
- Contribute to the real estate industry without buying/selling/renting.
- Many provide PropTech: Property Technology that helps individuals and companies research, buy, sell and manage real estate.