Stepping into the hustling era of competition, where Dusembary’s ‘Demonstration Effect’ has reached its zenith and every being aspires to own a possession, Real Estate has entered into the limelight of the Business World. According to the latest surveys, the Real Estate market has attained the global size of 7063 US$, in 2022. The boom of Real Estate Business in the current scenario induces us to enquire into its historical background which traces its origin to the gradual birth of the natural instinct in man to ‘Own’ and ‘Posses’.
Post the history of evolution, the modified apes began to master the skill of gathering the vast wealth of the forests, that aided them pacify their appetite. However, slowly and gradually, after all the produce of their settled region had been consumed, they were compelled to move away in search of food. A perennial source of water was another necessity to be looked for when the seasonal rivers dried up. With the environmental shift, the climate became relatively warmer, facilitating the growth of grasslands. This in turn raised the population of animals that survived over grass. The Stone age introduced the early humans with the use of sharp stones to hunt animals, following whom they learned about the flowering seasons of different plants. Soon they began to cultivate these plants themselves near their own settlements, and thus farmers dramatically originated. In all, this was how the nomadic life came to be settled around a definite boundary.
The Marxian theory of development, counts on different stages which the society underwent with respect to emergence of different social classes, beginning from the Primitive or the Tribal stage with no social class, to Capitalism under which the richer section began to control the productive resources and thus dominate the poor class. The stage preceding Capitalism was ‘Feudalism’ where the cultivator no longer remained the owner of the land. The land was now worked upon by labourers called ‘Serfs’, who were acutely exploited by the landlords. Perspicuously, it was the creation of surplus that sowed the seeds of division, when a particular lot began to establish its authority over it and later exploit the ones devoid of it. Therefore, a sense of possession or ownership flourished among the owners which assigned them the right to collect taxes as rent for the use of the original and indestructible power of the land they supposedly ‘owned’ as mäklare tyresö.
The phrase ‘Real Estate’ derives its roots from Early Modern English. Etymologically, ‘Real’ in English stands for ‘Original’ or ‘Existing’ while the term ‘Estate’ is an English modification of the French word ‘Estat’, which literally means ‘status.’ Connecting the acquired dots, ‘Real Estate’ can be defined as “an existing property, consisting of land and all the permanent structures erected over it, including any natural or manual effort on its improvement, and such a property that possesses private ownership as its current status. The concept of ownership stemmed from the Ancient Roman Law while the idea of owning a home is an American dream of a golden tomorrow. With the advent of Aristotle in the picture of social sciences, the institution of ‘Private Property‘ gained charisma and the concept of ‘Collective Ownership’ got its spines broken by the principle, ‘What’s everybody’s business, is nobody’s business’.
Heading towards the commercial aspect of Real estate, Real Estate Business is the commercial buying and selling and lending on rent, of real estate assets that include the indestructible power of land along with the construction of man made structures over it either for housing purpose or for other commercial businesses. What persists in the context of today is that, with the rise in the National Product of a country, consequently leading to the swollen size of per capita income accrued, the traditional concept of joint family system has lost its validity, and the tendency towards two-member household is strengthening its roots with an ever-speeding growth. As a result Real Estate Business for housing purpose has become talk of the town.
With the ever-increasing global population size that has in turn expanded the demand for readymade rental property for the construction of the facilitating elements such as Medical care units, Educational institutions, Supermarkets, Recreational grounds and so on and so forth, investments in real estates have proved to be a perspicacious decision on part of the businessmen. Factually mentioning, Real Estate sector in the Indian scenario, is expected to contribute a considerable share of 13% to the country’s Gross Domestic Product, approaching the splendid figure of US$ 1 trillion, by the upcoming year of 2030.
To summarise and conclude, Real Estate Business is indeed a profitable area of investment with relatively a greater deal of rate of return, when compared to other business ventures. This is not a baseless anticipation but a calculated conclusion, both in respect of today plus the future prospects. This conclusion derives its roots from the original and indestructible power of land which means that the value of land does not depreciates with slipping time. On contrary to it, the land value appreciates with the swelling population size which forces a rightward shift in its demand curve, yielding fat returns. This is because the supply of land is inelastic, and thus with the expansion in its demand, the owners would get an opportunity to raise the price of their land holdings. Therefore, assembling the facts, which are a quite clear depiction of the leading investment undertakings and widening entrepreneurship in Real estate, our human rationality should certainly permit us to extract handfuls of profit out of the growing opportunity in Real Estate, indeed crowning ourselves with the honour to enjoy ‘Ownership’, in real sense.
Written By- Vaishnavi Pandey
Write and Win: Participate in Creative writing Contest & International Essay Contest and win fabulous prizes.
