Constructive Builders and Realtors in Visakhapatnam
There are many professions in the universe and all those professionals can’t live without this professionals – Builders and Realtors. In many cases Realtor and Builder roles will be played by a single person only in Visakhapatnam. Realtor is a person dealing with properties of all types such as farm lands, agriculture lands, orchards and construction sites. Many a time this realtor dons builder incarnation also by raising buildings both residential and commercial in the sites owned by him. The builder makes agreements with the landlords and sells constructed buildings to others in Visakhapatnam. In 2021, around 40 million square feet were delivered in India. In the upcoming 2-3 years, India is expected to have a 40 per cent market share and deliver 46 million square feet in 2022. By 2025 the real estate demand would increase by 15-18 million.
Investments by Realtor and Builder
First of all a realtor has to pay for purchasing land from landlords and for that he has to invest minimum Rs 5 crores aproximatly in these days in Visakhapatnam. After that he can sell that by way of laying plots or else can raise buildings and sell flats or independent houses or in the way of gated communities. Whereas the builder can enter an agreement with the landlord by just paying minimum token amount and go for construction and sell his share of flats to others in Visakhapatnam.
Returns on Investment
Using the cash on cash rate calculation, a good return rate is 8-12% for realtors and builders. But majority of realtors won’t settle for anything less than 20 %. In case of builders this RoI can be changed as they have to maintain staff and feed them in the form of wages even when they are not engaged in construction activity and this will not be less than 15 % in these days.