Real Estate Tenders in Public Sector
It does not mean that there is no scope for real estate tenders in the public sector. On the contrary numerous such tenders are floated every month from different authorities under the central and state governments in the country. Thus an entrepreneur can benefit on both counts by bidding for the tenders in public as well as in the private sectors.
Basic differences in the bids on real estate tenders in public sector and private sector is that in the public sector the tenders are floated inviting bids for purchase of real estate properties whereas in the private sector it can be both ways; buying as well as selling. Reasons for this difference are that-
- Government does not require buying lands as land of the state is within its jurisdiction.
- Even when the government requires private lands for any purpose, it will go for the acquisition under Land Acquisition Act 1894 on payment of compensation on resort to such other Acts and Rules as the Coal Bearing Act 1982, NH Act or the Railways Act.
- Thus question of floating real estate tenders for buying real estate property in case of government is irrelevant.
- Private sector is just the reverse where most of the tenders are floated for buying though some tenders are also floated for selling.
Real Estate Tenders Types
Multiple types of real estate tenders are floated in the market on regular basis. Such tenders relate to wholesaling, flipping houses, buy and hold, as well as the rehabbing properties.
Bid Price Differences
While real estate industry has grown by leaps and bounds during the last few decades, real estate tenders vary in the private and public sector in terms of prices. For government tenders, the bidder has to pay premium as fixed by government while for the private sector tenders, bidders can negotiate for the price either using the services of real estate agents or on their own. No brokerage is available in case of the government tenders.
Reasons for Growth of Real Estate Tenders
Population explosion, rapid industrialization and urbanizing trends have resulted in rapid growth of real estate business and consequentially in exponential growth of real estate tenders in the country. Land sale tenders are also floated quite often so that the requirements of both government and corporate houses. Such tenders are also floated by other agencies, especially the upcoming industries and corporate houses for meeting their diversified requirements like offices, staff quarters, factories and setting up other structures.
Whether it is the land sale tenders or other types of real estate tenders, bidders should carefully assess the legal requirements that could vary with geographical variations of locations. Though laws relating to real estate are mostly similar within the boundaries of a particular province, it could widely vary beyond the geographical limitations.
That is why it is necessary for any prospective bidder to learn about the specific legal requirements of the location.