THE BIG BUSINESS
Real estate is a commonly heard term in our daily life. The striking feature of real estate is a home. Home is the largest and only one priced investment some people make in their life. It not only is an investment but also becomes a centre point of our life.
What is real estate?
Real estate is a property with land and the structures on it, along with the natural resources like the minerals, water, and crops. It is an immovable property. The profession dealing with selling, buying or renting a house, business, is real estate business. It is a legal term used in the jurisdiction of India. The term real estate in English means physical or real property. The word “real” has its roots in Latin, meaning rex/res, that is royal/ things respectively. The word royal was used, since in olden days only the kings were the owners of all the land in their kingdom.
Types of real estate:
Real estate is of four different categories:
Residential real estate: This includes new constructions and also resale of old homes. The most common ones are the single family homes, terrace house, apartments, bungalows, vacation and holiday homes, and duplexes.
Commercial real estate: This includes those properties which yield profit and are used only for commercial purpose or business. They are mostly medical and educational buildings, shopping malls and small shopping centres, offices, and hotels. Apartments are owned and they also produce income if rented out or on lease. Therefore they are also included in the commercial sector of real estate.
Industrial real estate: Industrial real estate comprises of properties and buildings dealing with manufacturing, as well as warehouses and storage units. These buildings and properties can be used for storage, production, distribution and also research purposes. In certain situations, these distributing centres can be included in commercial sector of the real estate. This classification is because the various components of industrial real estate are handled separately by different real estate agents.
Land real estate: This is the most common heard term off late in real estate business. This yields high income in this profession. Land could be a vacant, unutilized land; could be just ranches; or could be farms and agricultural fields which are being cultivated. The vacant lands are further classified as early developed, undeveloped, and also site assembly.