Real estate is a property owned by individuals with land and improvement structures, buildings, roads, and utility systems. And property rights give the title of ownership to the owners with everything included like natural resources, animals, buildings and structures, plants, and more.

Types of real estates

Several types of real estate exist, and each has its unique features, purpose, and utility. Common categories of real estate include:

• Land
• Residential
• Industrial
• Commercial

If you are looking for an explanation on categories of real estate, read on. The following descriptions might be helpful.

Land

It is the baseline of all real estate properties. Land refers to an undeveloped or vacant land resource. All developers must acquire land and combine it with other real estate properties in a process called assembly and rezoning to increase the density and add value to the property.

Residential

It involves housing for individuals or families. Residential properties are set up to house families and individuals and are classified as an asset class. In a residential real estate, single-family houses, condominiums, apartments, or townhouses exist as living arrangements for residents.

Commercial

It refers to land and buildings meant for commercial operations. They include shopping malls, office buildings, parking lots, medical centers, hotels, or individual stores. The owners of commercial properties offer a lease for improvements like offices, parking lots, and more for a certain fee. When the lease expires, the property ownership returns to the owner unconditionally.

Industrial

It refers to land and buildings used for industrial businesses like factories, development and construction factories, logistics and warehousing, mechanical production, etc.

Now that you know the four main categories of real estate properties, let’s dive into more specifics of real estate properties:

• Single-family dwelling: is a home designed to house a single-family and no more.
• Multi-family dwelling: is a real estate property that hosts more than one family, or says a group of families in one real estate property.
• Attached: housing units connected, not free-standing.
• Apartment: is an individual unit standing within multi-building units with the boundaries defined by a perimeter wall with lockable gates, a standard feature in multi-story flats.
• Multi-family house: is often seen in multi-story buildings where each floor is regarded as an apartment.
• The condo is a building with individual units and owned by different people.
• Detached house: is a free-standing house not connected in any way. They are the conventional homes typical in rural and suburbs.
• A mobile home is a house that can be transported from one place to another. You can use a flatbed truck to move your home to a new location.
• A motorhome is a real vehicle on wheels with a permanent home set inside.
• Villa: is a building with a single room, but its roof is designed to be steep and pointed.
• Hut: is a dwelling made of readily available resources like bamboo, clay, mud, or wood.

Overview of real estate

Real estate is subdivided into different areas, for example;

• Development
• Brokerage
• Sales and marketing
• Property management
• Lending
• Professional services like law, accounting, customer care, etc

Let’s look at each of these real estate areas;

• Development: involves purchasing land and adding improvements to add value
• Sales and marketing: are firms who work together with developers to sell newly developed units
• Brokerage firms: work with real estate agents to facilitate transactions
• Property management: help real estate owners in property management services.
• Professional services are services that help real estate function i.e., lawyers, accountants, etc.
• Real estate lending: provide finance for real estate businesses