Types of Real Estate businesses­čĆś

May 07, 2020

Real Estate refers to real, or physical property which encompasses land, buildings, or both. The properties are characterized into 3 categories - Residential, Commercial and Industrial. Realtors assist property owners, investors as well as businesses in buying and selling of properties in the real estate market.


We'll go through the categories of the real estate properties one after another, along with their examples.

1. Residential Real Estate

So, the first and the most common type is Residential real estate properties, which comprise of the land which is developed for living purposes. It includes new as well as resale properties and can't be used for commercial or industrial purposes. The most ordinary type of residential real estate properties include family houses (single or multi). Other types are duplexes, condominiums, townhouses and vacation houses. Residential properties are the most significant financial investment which can be possessed by a person. Buyers can purchase the residential properties either for living or for leasing it to others and charging them rent to make money.

2. Commercial Real Estate

Commercial real estate covers properties which are non-residential, used for profit-making purposes. It is meant for business purpose only and is are offered by property owners to businesses on lease, and rent is charged from them which becomes the income of the property owner. These properties include office buildings, medical centers, shopping malls, educational buildings, hotels etc.

3. Industrial Real Estate

Industrial real estate properties are meant for research & development, production, storage as well as distribution of products and services. These properties include factories, manufacturing buildings, research & development parks, business parks and warehouses. These properties are generally enormous and are highly maintained by the tenants in order to increase their business, plus the maintenance, repair and insurance costs are also incurred by the tenants not the owners.

Overall health of the economy, measured by Gross Domestic Product (GDP), is directly related to its real estate market. Establishment of new buildings, whether they are built for residential, commercial or industrial purposes, boost the GDP of the economy. Investments made in real estate in the form of buying and selling of properties or by buying the stocks of housebuilders, appreciates with the passage of time, keeping up with inflation. Due to positive leverage, investors enjoy higher returns.

Some buyers prefer to close real estate investments on their own, without taking help from the market experts. Nevertheless, even if they managed to close transactions successfully in the past, uncertainties always exist in the market which can result in negative consequences. So, it is always a good idea to consult a realtor before making buying decisions on your own. They have complete market knowledge and are aware of the flaws and problematic areas, and provide the best assistance to their clients.

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Tanveer Dhiman

I am the editor of this blog and I love to write blogs about the Real Estate business. When I'm not creating content, I love to drink coffee, read books and try new things! ÔŁĄ

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