Different Types of Real Estate
Real estate refers to buildings, land, property, underground, and air rights below and above the land respectively. Real estate is real property or physical property. In business terms, real estate refers to buying and selling property. It is a key sector of the economy as it is a major driver of economic growth.
Real estate or real property includes land and any other tangible infrastructure that rests or may be erected on it. The infrastructure installed may be a building, road, or something that may be installed underground such as a septic tank.
How Real Estate Operates
Real estate involves a number of factors since it does not simply exist. It can be constructed right from scratch or it can be improved. It can also be bought or sold transferring all the rights bestowed on it to the new owner. A private party, corporate entity, or government can own real estate.
Types of Real Estate
There are four types of real estate.
Pieces of Land
This refers to bare lands such as farmland, vacant plots, and ranches. The subcategories under this group include both underdeveloped and land that is in the early stages of development. It also includes land that is under subdivision and site assembly.
Residential Real Estate
Residential real estate refers to both newly constructed and resale homes. The most common category is single-family homes, townhouses, condominiums, and vacation homes.
Industrial Real Estate
This refers to real estate designated for manufacturing and warehouses. They are mainly used for production, storage, distribution, and even research. However, some buildings that are used for distribution are classified as commercial. The classification is vital, especially for zoning purposes.
Commercial Real Estate
This refers to real estate such as shopping malls, hotels, offices, educational and medical buildings. Apartments also fall in this category since they are mainly built to generate income despite being used for residential purposes.
Investing in Real Estate
Investing in real estate involves buying and selling property. One way one can participate in real estate investing is by flipping a house. This involves buying it to renovate and improve and later on selling it. Also, one can own several houses and earn rental income from them.