The real estate sector accounts for about 60% of global investable assets, including equity bonds and bullion. It is a key pillar of the Indian economy. It is predicted that its share will double from 6.3% to 13% between 2016 and 2025, with a 90% increase in employment in the sector. In the last few years, the government has initiated economic reforms and enacted policies that would impact the demand for real estate, increase transparency, attract foreign investment, and organise the sector.
These key initiatives include Make in India, Smart Cities Mission, Housing for All 2022, Goods and Services Tax (GST) Act, Real Estate (Regulation and Development Act) (RERA), and Real Estate Investment Trusts (REITs). The first Indian REIT was listed in 2019, since then there have been two more REIT listings. There are about 100 Mn square feet of commercial assets managed by REITs, and more REITs are likely to get listed in the next few years. Despite the looming threat of global recession brought on by the Russia-Ukraine war, the IMF has projected India to be the fastest-growing major global economy in the past (6.8% in 2022), present (5.9% in 2023), and next year (6.3% in 2024). India is, therefore anticipated to overtake China and the United States as the third-largest economy in the world by 2032.
With the fast growth of the Indian economy and reforms in the real estate sector, it has become mainstream in the economy. Today, India is a preferred destination for international investors in the sector. The Indian real estate sector is getting organised and will need a large pool of trained professionals. The real estate and construction sector today is the second largest employer after agriculture. According to the National Skill Development Corporation (NSDC), India’s booming building, construction, and real estate industries may require an additional 31 Mn workforce, compared to a 25 Mn reduction in agricultural manpower between 2012 and 2022. Statistically, this makes up about 28% of the total incremental manpower required for all sectors of real estate.
In advanced economies like Europe, Australia, and the US, all major universities have courses on real estate. In India, real estate education is still evolving, with the first school established in 2013 at RICS School of Built Environment, Amity University. Today, there are only about half a dozen major universities/institutions that impart education in the real estate sector.
Given the scenario, there is a significant unmet need for MBAs and specialised real estate managers to meet the demand for the rapid growth and organisations in the real estate sector.
Real estate MBA graduates get trained in specialised real estate skills like property valuation, project feasibility, sales and marketing, investment management, debt and equity raising, project management, facility management, etc. These graduates are employed by property developers, REITs, Private Equity Real Estate funds, international and domestic property consultants, retail brands, banks and housing finance companies, contractors, and other corporate entities to manage their real estate assets and investments.
There are emerging global concerns about climate change and disruptions due to technologies like Artificial Intelligence and the emergence of the gig economy (a form of temporary employment for independent and self-employment). Real estate education needs to focus on incorporating the changing demand of the industry and economy, with a focus on issues like sustainability and technology changes for students. In addition, with the changing work patterns post COVID pandemic and the demand of the gig economy, MBA real estate education should focus on developing job-based competencies so that young graduates can fit themselves into the requirements of job roles and be productive from day one. The world is fast changing, and so are the demands of clients and workplaces. In addition to preparing MBA graduates for the shifting realities of the modern world, these courses ought to teach students how to be flexible and adapt to future advances in technology and other areas.
(The author is associate professor and director, research and consulting, RICS School of Built Environment, Amity University, Noida.)
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