What are the different types of real estate?

What are the different types of real estate?

If you are reading this and you’ve been asking yourself this question, what are the different types of real estate? Well do not worry, you are not alone, I was just like you. I never understood exactly all that real estate comprises of until I began the journey to do my own research. And it was amazing what I discovered and that is exactly what I’m going to be sharing with you.

 Considering the broadness of the subject I would try as much as I can to narrow it down and hit the nail at the head. For that purpose I’ll be sharing with you the three major different types of real estate. I understand there could 6, 7, or even 10 types of real estate but hey let’s talk about these major ones.

Three Types of Real Estate

Now let’s get to it very quickly…

  1. Housing real estate

You can call it residential real because that’s the most commonly used term for it. Housing realestate is the type of real estate developed for people to live on. In most countries a particular area is zoned for housing real estate only. This simply means that these particular zones cannot be used for commercial or industrial real estate purposes. Housing Estate developments falls into this category. Housing real estate includes houses, duplexes, bungalows, condos, and townhouses depending on the term used in your own country. The structures may be in the form of flats, single-family or multi-family dwellings. It may be rental properties for living or occupied by the landlord/owner.

  • Commercial  real estate

The term commercial real estate refers to buildings or land intended to generate a profit, either from capital gain or rental income. In most countries there are areas designated only for commercial purposes. Even in some cases, some individuals might still live in that area, but that still doesn’t change what it is. In my research, I have also found out that there are areas that started out as residential real estate, but was later overwhelmed by urbanization and turned into commercial real estate zones. What I also discovered is that nothing is static, as the population of a country and its needs evolve, some policies are changed to align with what is obtainable. This is why across the globe there are cities that started out as Residential real estate but later metamorphosed to commercial real estate.

Nonresidential structures such as shopping centers, strip malls, medical and educational buildings, hotels, office buildings, warehouses, and retail all other buildings falls under the category of commercial real estate.

  • Industrial real estate

Industrial real estateis a term used when classifying structures or areas meant for industrial purposes. These are areas set aside for the purpose of industries and any type of buildings or lands dedicated for this purpose(s). In fact Commercial and industrial real estate have huge similarities but the main difference is that Commercial real estate basically refers to land intended to generate profit while on the other hand, an industrial real estate is used for actual manufacturing and can be weighed as a factory or a plant.

Industrial properties include warehouse/distribution buildings, manufacturing buildings, flex buildings, showroom buildings, refrigeration/Cold Storage Buildings, telecom / data hosting centers.

Need to know

Industrial Geography refers to the study that deals with the location of industries, the geographic factors that influence their location and development, the raw materials used in them, and the distribution of their finished products.

Finally, I know land is included as one of the different types of real estate. Of course it is. But seeing that it falls under the three mentioned categories and that its categorization depends on what it is specifically used for, I didn’t think it necessary to include it as a stand-alone category.

Buy now I am sure that you must have learnt everything about all types of real estate. Please if you find this piece interesting, don’t forget to leave a comment.

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