Auditing Construction and

Real Estate Industry

 GROUP 5 and GROUP 6

Shaina Camaganacan Honey Evangelista Psyche Opanis Marielle Castillo Carel Teatro

Lendon Llagas Princess Aban Jamaica Tabac Desiree Dawn Gabales Angel Alpuerto
 OVERVIEW
One successful business in the construction world is
the real estate industry. This industry covers many
aspects of the property such as development,
leasing, appraisal, marketing, and management of
commercial, residential, agricultural, and industrial
properties. The industry fluctuates depending on
the economies but at the same time remains
consistent since people always need homes and
businesses need commercial space.
REAL ESTATE

Real estate is any real property consisting

of land and improvements such as fixtures
(i.e., access door, lighting, awnings, etc.),
buildings, roads, structures, and even utility
systems.
 Here are the four types of real
estate:
1. Residential 2. Commercial 3. Industrial 4. Land
• This includes both new • Included in this type of real • This kind of real estate includes • Land can either mean vacant
construction and resale. A estate are strip malls, manufacturing buildings and land, ranches, or working
common category of shopping centers, property, including farms. Subcategories of this
residential real estate is educational and medical warehouses. There can be kind of real estate include
single-family homes. Other buildings, hotels, and offices. various uses for industrial undeveloped, early
residential real estate’s Apartments, although used buildings such as research, development or reuse,
include condominiums, co- for residences, are often production, distribution, and subdivisions, and site
ops, townhouses, triple- considered commercial since storage of goods. However, assembly.
deckers, high-value homes, they are owned to produce buildings where goods are
duplexes, quadplexes, income. distributed, are considered as
vacation, and multi- commercial real estate.
generational homes.
 How the Real Industry Works?
1. Development
Real estate development is the process of purchasing raw land,
rezoning, renovation and construction of buildings, as well as sale
or lease of finished products to end-users. Real estate developers
end profit by adding value to the land such as creating buildings or
improvements or rezoning and taking a risk in financing a project.

2. Sales and Marketing

Firms that focus primarily on sales and marketing work with
developers to sell buildings and units that they create. Commissions
are earned by these firms for creating all marketing material and
using sales agents to sell completed units. Sales and marketing
firms focus more on new units.
 How the Real Industry Works?
3. Brokerage
A brokerage is a firm with a team of real estate agents or realtors as
employees. The real estate agents help in facilitating a transaction
between buyers and sellers of property. One of their jobs is to
represent either party and help them achieve the purchase or sale
with the best possible team.

4. Real Estate Lending

Lenders include banks, private lenders, credit unions, and
government institutions. They play a huge role in the real estate
industry since all properties and developments use debts to finance
their business.
 How the Real Industry Works?
5. Property Management
Property management firms play a role in helping real estate owners
rent out the units in their buildings. Some of their jobs include
collecting rent, fixing deficiencies, performing repairs, showing
units, and managing the tenants. They charge a fee which is a
percentage of the rent to property owners.

6. Professional services
There are a variety of real estate professionals who work in the
industry and help make it function. The most common examples
(other than the ones listed above) are accountants, lawyers, interior
designers, stagers, general contractors, construction workers, and
tradespeople.
Overview, Updates, Statistics of the Specialized
Industry in the Philippines
At the end of 2018, the supply of condominium units
among the highly urbanized cities of Fort Bonifacio,
Makati, Bay area, and the Ortigas Center were higher
compared to Alabang, Araneta Center and Rockwell
Center.
The Philippines real estate market is expected to post revenues
of USD XX billion by 2020 due to the increasing urbanization
and expansion in the real estate construction projects. The
demand is expected to rise due to growth in the number of
multinational companies and a number of BPO’s. The real estate
market in Philippines is poised for growth at an estimated CAGR
of XX.X% over the forecast period, from 2016 to 2021.
THANK YOU!