Economic Development And Real Estate Development are two broad terms. Economic development refers to the concerted effort sustained by policymakers plus the community that promotes standard living. It also assures economic health in any specific area.
These efforts are involved in multiple areas that include the development of critical infrastructure, human capital, safety, health, literacy, and other initiative things. But the term economic development differs from economic growth.
It is a policy with the aim of economic as well as the social well-being of people. Economic growth helps raise GDP.
Amartya Sen, an economist, mentioned that:- “economic growth is one aspect of the process of economic development.”
Real Estate Development
A real state is where one fortune can be lost or made. This is one of the games for the entrepreneur or for the people who love to play with risks. Real state is a game where actually amateurs make tremendous confusion; at the same time, it is a game where professional people make significant blunders.
This is one of the businesses that one can make monuments to immortality, as well as a business that shapes the communication and environment. It is a process that responds to the real estate need in any society, and it creates or finances new products that satisfy that need. This process involves market research, leadership, public relations, marketing, financing, construction, and property management.
Real state business is like other business, whereas one person adheres to the moral and ethical laws of the society through ordinances and codes. Also, this is a business where products can be generated on regular ongoing cash flows for the investors and developers over a long period of time. The real estate business also works as a physical feature; at the same time, it forms the environment to create land, air, or water.
It can help change technology, demographics, socio-economics, architecture, laws, entertainment, and manufacturing. In addition, this can deal with the historic preservation that reaches the future in master planning.
The objective of real estate development
Real estate helps in identifying market demand and fulfilling it. It also helps in minimizing the risk, at the same time, creates the highest value with the highest return against investment.
The objective of Economic Development
Economic development helps to advance the policies plus pursue actions that improve the living standard and the quality of life. When the living standard improves, it creates the perception of the value that, in turn, attracts the investment of necessary capital that helps in manifest real estate development.
In the tangible and intangible attributes, the crux of economic development is a verifiable elevation. The highly successful real estate development is diminished without the ability to support economic development.
The crux of real estate development is the establishment of trust and faith between user or buyer and real estate developer plus property owner. It helps in the execution of an agreement that offers consideration in the exchange for property rights.
The advanced economic development will be diminished without such support. Economic development and real estate development align their effort and interest to pursue their business and build their relationship with customers.