Real estate is defined as property in the land, including land, buildings and underground rights, as well as its natural resources such as crops, minerals or water. The term ‘real estate’ means real or physical property. The word “real” is derived from the Latin word root res or things, and they also say it comes from the Latin word rex, meaning “royal” because kings used to own all the land in their kingdoms.
There are 4 types of real estate –
1. Residential Real Estate
Residential real estate includes both newly constructed buildings and resale homes. The most common category and the one it relies on are single-family homes. These are also called condominiums, duplexes, townhouses, duplexes, triple-deckers, high-value homes, and vacation homes.
2. Commercial Real Estate
Commercial real estate includes shopping centers or malls, medical and educational buildings, hotels, and offices. Buildings are often considered commercial even if they are used by residents, this is because they are owned by developers to generate income.
3. Industrial Real Estate
Industrial real estate includes manufacturing buildings and warehouses. The buildings may be used for research, production, storage, and distribution of goods for industrial purposes only. Buildings used for storing goods are considered commercial buildings.
4. Land
The sub-categories of vacant land include –
- Underdeveloped, developed or reusable sites
- subdivision sites
Real estate means production, purchase and sale of property. Real estate is also affecting the economy through economic development in countries.
1. Construction of new buildings
It is a component of GDP. It includes both residential and commercial buildings. Over the years, real estate construction has contributed trillions of dollars to the country’s economy. Currently, real estate is growing rapidly and helping in the development of countries.
2. Sale of new buildings
New home construction is an important category. It includes the construction of family homes, town houses, and condominiums. National Association of Home Builders Provides monthly data on home sales and contains average prices. It takes 4 months for a new home to sell. Real estate agents assist homeowners and investors in buying and selling all types of properties. The industry is divided by specialists who focus on one type of real estate. Agents help find buyers through multiple listings or through their professional contacts. They know the local market well. This means they can find a property that meets your important criteria, and then they compare prices. They guide you to affordable areas. Buyers and real estate agents negotiate, giving reasons so that the seller accepts a lower price. Real estate agents help during the legalities of the process, inspections, and financing. Real estate agents who increase their professionalism become Realtors,
Also read: 5 things you should know before buying a home in Bangalore
Buying or selling a house or land is called real estate investmentThis means that you must consider many factors. Will the price of the house you are living in increase? If you get a mortgage loan, how will the interest rate affect your future? Many people are investing in homes that they want to buy and sell as a business. Many people have multiple homes and they rent them out, and even rent out vacation homes. They are basically investors who invest in housing without buying a home. You can buy shares from home builders. Their stock prices rise and fall in the market.