Real estate companies are involved in buying and selling houses and plots of lands. Actually the term real estate means immovable property and immovable property normally means a plot of land. Again, any kind of construction on that plot of land is also immovable property. The construction may be a house, a garden, a bungalow, a hotel or any kind of man made improvements or alteration on that plot of land. The real estate companies buy huge plots of land and use these pieces of land to develop structures or landscapes according to a planned model. Finally when the piece of land is adequately re-shaped or relaid, the new-look real estate is sold to the property seeker wherein the developer keeps a good margin of profit.
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real estate companies also sell undeveloped plots of land sometimes but such transactions are comparatively less because most people do not want to take the trouble of developing a piece of underdeveloped land. This is one of the main activities of the real estate companies and it is to be one of the main sources of revenue for them. They also sell or broker deals between two parties involved in the buying and selling of real estate an in the process earn a commission for the services rendered.
The real estate industry is also a major employer and provides work to a large number of people at different levels of the socio-economic ladder. For instance, the development of an underdeveloped piece of land involves the services of workers ranging from surveyors and operators of earthmoving machines to Architects and landscape designers among others. In terms of scale a very large force of rudimentary labor is required at the early stages of structure construction. This sector is growing by the day and with that is growing the need for human resources to manage the business.
The growth of the real estate sector is related to the growth in the number of people who can afford to buy property. The need for quality housing is growing at a fast pace and along with that there is a corresponding growth of firms involved with the different aspects of the real estate sector. In place of old houses built on huge plot of lands, new houses built on small plots with more sheltering capacity, are coming up. The standard term to quantify real estate today is called FSI (Floor Space Index) which essentially computes all aspects of the usable space within a developed piece of land.