Page 14 - Weaver Magazine | Volume 17 - January 2023

VOLUME 17 I JANUARY, 2023

Effect of surrounding environment on real estate project

By : Wildanita Risna Anggi Aisyifa

Before we get to know or know how it is possible
that the surrounding environment has a big role
in building a real estate project, then from there
we have to know what is real estate? Real estate
itself can be interpreted as land which includes
buildings that are on it or something that is
permanently attached to it. Therefore, the real
estate business is a business that aims to trade
land and buildings on it. Examples include
housing, warehouses, buildings, apartments and
so on. However, the real estate business itself is
different from the property business, there are
subtle differences between the two. In short, it
can be seen from the keywords that distinguish
the real estate business from the property
business lies in its physical form and ownership.
Real estate is more inclined to physical form
(land and buildings). Meanwhile, property is more
inclined to physical ownership (land and
buildings).
There are several advantages of the real estate There are several types of real estate business
business. Every investment will definitely provide based on their use, real estate can be divided into
a big profit or profit, and the property business is five types, namely: Residential, such as landed
no exception. the real estate business itself is a houses, apartments, condominiums, and
type of long-term investment that requires townhouses. Commercial, such as world centers,
proper observation and analysis, which we will offices, hotels, cinemas, golf courses, and
then feel the benefits of in the future. The waterparks. Industry, such as factories and
following are the advantages of the Real Estate warehouses. Plantations, such as gardens, rice
business: Prices tend to always go up, big profits, fields, and forests. Others that are not included
not too affected by economic inflation, can be a in the four types above, such as places of
source of passive income, and finally can be used worship, hospitals, government facilities, and
as a long-term investment. then besides there schools. However, in practice or in reality, there
are definite advantages there will be are only two types of real estate that are usually
disadvantages in running a business, following used, namely landed houses and commercial
Losses from the property business can come ones. These two types of real estate are most
from building maintenance costs because it often used by businessmen or developers in
requires a lot of funds, requires a lot of capital dividing their business categories. Part of the two
and requires large transaction costs, and there is types of real estate is due to the fact that each
a risk of being destroyed if the area experiences has different types of risks and types of buyers.
natural disasters such as floods, earthquakes, etc. Page 13

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