what is real estate?

Define the real estate Types
Image by KLyadav, propertyaccord.com

Real Estate is defined as property, Land, buildings, and their rights above the land and underground right below the land. The term real estate means real or physical, property. 

Four types of real estate

There are four types of real estate:

1. Residential

Any property used for residential purpose, It can’t be used for commercial & industrial purpose. Examples include single-family-home, duplexes, townhouses, cooperatives, and multi-family residences with fewer than five individual units and vacation homes. In residential real estate, the most common category is single-family homes.

“If you have a residential property, you can’t use it for commercial and industrial without converting it”.

One word solution residential property means residential unless we convert it to any other property types(commercial, industrial).

2. Commercial

Commercial properties mainly consist of shopping centers, malls, medical and educational buildings, hotels, and offices. If apartment buildings are used as a residence for purpose of earning money, then they also fall into commercial property.

Therefore, we can say that all the properties used for the production of money are covered under the commercial property.

3. Industrial

Industrial real estate includes a building that is used for research, production, storage, and distribution of goods. Also, the construction of a building or property also comes under industrial property.

There are also some building which distributes goods, but they come under commercial real estate. This classification also becomes important because manufacturing, sales, or zoning are handled differently.

The construction site of a property or the place used to make or distribute any item, all fall under the industrial property.

4. Land

Land means ground, plot, and field. The Land includes vacant land, farm, working fields, and any barren land. The subcategories of vacant land include undeveloped land, early developed land, reuse, and subdivision.