Different types of real estate

You must have heard of the real estate business. Have you ever wondered what real estate is? How many types of real estate are there?

If yes, then this blog is for you. In this blog, we will discuss real estate and the types of real estate.

What is real estate?

Real estate means physical property; anything that comprises land, buildings, and constructions over or under the land comes under the classifications of real estate. So, you see land, and every physical thing related to the land falls under real estate.

So, real estate property differs from personal properties like jewellery, vehicles, furniture, and other moveable objects.

Difference between land and real estate:

 Sometimes the term land is used instead of real state, but there is a difference. Land means the earth's surface, including the minerals and water under the ground and the air above. In comparison, real estate encircles the land and the permanent man-made additions like buildings and other things. Any man-made improvement on the land that increases the overall value of the land is called real estate development.

So land is a part of real estate.

Real estate agent:

A real estate agent is a licenced professional in the real estate business. In a real estate deal, he/she involves in negotiation on behalf of the buyer or seller and seals the deal.

Types of Real estate:

There are mainly five types of real estate. These are vacant plots, residential, commercial, industrial real estate, and government owned real estate. 

Vacant Plot: 

The vacant plot also falls under real estate property. An open plot is the most affordable real estate property. If we talk about the categories of plots, there are several types of plots. The main types of plots are agricultural plots, residential plots, industrial plots and industrial plots. 

Residential Real Estate:

Residential real estate comprises the building where you can live with your family. That means apartments, houses, villas, flats and condos all come under this category. These types of real estate are not for business purposes. This is the most sought-after real estate in India. 

Due to the overgrown population in India, residential properties are highly in demand. If you are thinking of investing in a property, then this where you should look for. 

Categories of residential real estate

• Single-family homes are standalone residential buildings that usually have their own plots. These types of houses are for single-family use.
• Townhouses are those buildings that share a common wall and stand side by side.
• Condominiums are part of large community buildings owned by multiple families. These are like apartments, and the maintenance of the building is carried out by the residents of the building.

Commercial Real Estate:

Commercial real estates are those properties that are used for business purposes. Usually, these types of real estate are given on rental to the companies to build offices. Commercial real estate is of different categories, such as office space, hotels, resorts, malls, restaurants and healthcare facilities.

Commercial real estate definitely costs more than residential real estate. But you can earn more money from commercial real estate. If you have commercial real estate, you can run a business, or you can give it for rental service. Unlike residential properties, in commercial real estate, you don't have to deal with renters. You will be dealing with proper businessmen who will take a lease of the property and pay you. One upside is that you can't use commercial properties for living purposes.

Some common categories of commercial real estate:

• Office: Offices are of two types urban and suburban. Urban offices in cities usually have big buildings, skyscrapers, and high-rise buildings. On the other hand, suburban offices are smaller in comparison.
• Hotels: Hotels are buildings that provide accommodation, meals and other services for visitors. Hotels also have some subcategories like limited service, full service, banquet, resorts and Casino. 
• Special purpose: This type of commercial real estate doesn't fall under any specific category. 

Usually, amusement parks, parking lot, and cold storage fall under this category.

Industrial real estate:

Industrial real estate is usually built on large land. These real estates are close to a big city and need an airport or seaports. Industrial real estates need good infrastructure so that the vehicles can travel fast. There are a few types of industrial real estate.

Types of industrial real estate:

• Fifty per cent of industrial real estate is warehouses. These are the place where the products are stored and delivered to the distributing centres. These warehouses are usually of hundred thousand feet and a single-storey building. They can have up to 50 feet of high ceilings and multiple doors for trucks.
• Manufacturing real estate is designed for manufacturing products. These types of real estate accommodate heavy types of machinery and thus need a strong foundation. These factories need three-phase electric supplies, high-capacity ventilation and exhaust.
• Multitenant industrial properties accommodate mid-size businesses. These are basically smaller facilities with multiple tenants.
• Telecommunication industries are growing with modern technological advancement. These types of real estate need heavy electricity. So, they are usually located in the cities.

Government own real estate:

These types of real estate are owned by the government, like roads, government offices, go-downs, and other facilities. These types of real estate are maintained by the government. Sometimes government also puts these real states on lease for industrial purposes and other developments.

Conclusion:

So these are the categories of real estate. Investment in real estate has some advantages and disadvantages. No one can say which one will be a good investment. But you have to study the market and take decisions by yourself. Make sure you have researched well before investing in a real estate property.