The Global Real Estate Industry

The Global Real Estate Industry
Business Sector The industry plays a crucial role in UK’s economy. It helps in employing 1
million people and contributes in the economy around £ 94 billion which £
5.4% of the total economy
Some of the major competitors in this field are Savills, Ability Group, ZPG ltd.
and many more.
Savills- It is one of the well-known real estate company which was founded in
UK in 1855. The company deals in various services like buying and selling,
consultancy, renting, property management and many other services.
Ability Group- Ability group is a British property company which was founded
in 1996 by Andreas Panayiotis. The company is based in Brentford. It owns
7,000 residential properties which are worth around £1 billion.
To understand more about the real estate market situation, Porter's five forces
can be practised in this scenario.
The mentioned analysis helps in identifying the competition and other factors
that affect the whole industry. However, the competition analysis of industries
works differently. It can be calculated on the basis of changes and the
development of the industry. It is consisting of five elements which are threat
of new entrants, bargaining power of buyers, bargaining power of supplier,
rivalry amongst the competitors and threat of substitute products.
Business Sector is also Known as corporate sector is a part of the economy which is
been made by various companies. It is distinguished in many ways. Few of the
economists divide it by corporate, non-profit organisations and government. Whereas
the majority prefers to define it in three broad sectors which are Primary sector,
Secondary sector and tertiary sector.
Primary Sector- This sector includes extracting and harvesting of natural
products like agriculture, mining, etc.
Secondary Sector- Secondary sector involves manufacturing and processing
the goods that are produced by primary sector.
Tertiary Sector- It is consisting of providing services or delivering the final
product in the market like retail service, entertainment, food outlets, etc. Let us now
study more about real estate industry.
Real Estate Sector- Real estate as a business point of view is the profession that
deals in buying, selling, or renting of various types of properties like building,
housing, land, etc. It is a legal term that is used in jurisdiction which is obtained from
English common law.
The majority of building structures in UK are private housing buildings. However,
the prime concentration of the industry in UK is on commercial estate as it has a
value of £1,662 billion. The medium of the financial return is usually in the form of
rent which is received by the private rented sector i.e office, retail, medical, hotels
and leisure.