“The complex mechanisms of finance and economies in real estate confronts architecture and urban planning in the contemporary global economy despite integrally connected and dependent on each other.”
Role and Relationship Between Real Estate and Architecture
Since the definition of private property rights, use of the property and the buildings that were built upon generated returns on capital invested. The real estate industry is a globally recognized sector which is constantly developing tools and processes to enhance efficiency and liquidity. The industry comprises of four sectors – housing, retail, hospitality and commercial.
Respective authorities in the industry have taken various initiatives to encourage development and infrastructure by forming regulatory norms and policies which is beneficial for the city and resident. The growing development urge creates discrepancies between real estate developers/investors as principals of structures and architects as agents of the structure’s construction and design. Real estate and architecture are both stubborn sides in maintaining a healthy relationship by contributing its unique way of gains respectively.
“Architects create the dream and real estate investors buy it.” Architects are champions when it comes to the quality of design and cultivating human experience whereas financial part plays an important role to achieve those qualities, this is where real estate investors steps in. There is an intersection between both fields to have knowledge about building regulatory, features and history. The scale of real estate advancements in the past decades in emerging economies complicated the work of architects to fulfil technical and administrative aspects. The architecture provides cultural capital that is hardly quantifiable to money, which results in commercial failure or success of the project.
Effects in Architecture
Architecture is mostly dependent on varied professions to create opportunities. Real estate stakeholder-driven projects privileges as primary decision-maker and architects as the secondary role which impacts both the value of practice and the quality of the built environment. The quest arises – does there exist a market for ‘good architecture’ within the market of real estate?
Planning and Design- Demand and supply Aspects
The architect’s role is at stake because of less control over the project and the dominance of existing real estate regulatory, policies and developer’s decision. Real estate is a volatile industry where they make use of value-based pricing. Fine-tuning assets by improving the appearance, functionality and durability put up premium in price over time. This drives growth and a better hedge against inflation in the market which points signification role of good design. It positively impacts not only economic aspect but also physical, emotional and socio-environmental facets.
Functionality was the only priority beforehand and aesthetics were compromised in distinct neighbourhoods. In most of the surveys and researches discovers the residents surrounding environs contributes to the sense of belongingness. Real estate is geographically bound, its unique characteristics attribute a sense of place, attachment, feelings and personalization. The restrictions in design due to technical and regulatory policies pressurize the designer from meeting the needs of the user.
The three design aspects affecting the design are the cost of construction, cost of design and the governance relationship between stakeholders. If there is a liberal economic handout to the architects for the role of planning and design can make increased quality in design. Qualitative good design is relative, in the whole realm, to quantitative real estate market. This integration of both professions can indeed reap rewards if appropriately put in service.
The demand for space and the demand for the inputs that create space for the users accounts a certain quality of space that is delivered by the production stakeholders. It is imperative to understand both demand-supply drivers for quality architecture to bridge the gap which results in market upliftment.
Real estate industry is forming the whole realm of the built environment surrounding us, whereas architects are a part of the industry designing with the utmost sensitivity and pleasant to experience the built structure keeping users and spaces in mind. The world will be a better place if the built city is developed by people who are educated and trained with culture, civic awareness, aesthetic sensitivity and historical knowledge. Nowadays, architects are rarely asked about location, size, use or materials, this has narrowed the scope of architects as stakeholders conceive projects looking into all aspects from concept to project’s operation. The framework of the architect-developer model is a possible opportunity to enhance the built environment in the real estate industry.