Real estate

Real estate is a lucrative business in the current era. Not only does it require great capital to start but also has positive returns if managed well. Read on to learn more about real estate.

What is real estate?

Real estate is property consisting of land and buildings, whether commercial or residential. It may involve the buying and selling or leasing and rent of buildings and land for profit. It is part of property investment strategies.

Real estate is a different kind of investment in the market. Some of the characteristics that make it stand out include:

  • Permanent – Real estate comprises permanent structures like buildings and land which if owned can only appreciate.
  • Location – For real estate to thrive better, the location must be convenient to customers. Many individuals want secure and good neighbors for instance.
  • Immobile – Real estate cannot be moved from one place to another.
  • Appreciation – Real estate can only appreciate as time goes by. This makes it a long-term property investment.

Types of real estate

Real estate has vast options to invest in. Understanding the type may be essential, especially for new investors and realtors.


Residential refers to homes and rental buildings where people live. These include mobile houses, single-family houses, duplexes, condominiums, and co-operatives.


Commercial real estate may include leasing and renting out commercially. This involves all property used for business purposes like retail space, parking garages, office space, hospitality, and storage spaces. These businesses may lease the property for a certain period or choose to pay rent monthly.


This is a long-term business in real estate. It involves the purchase of land for future development, re-sale at higher prices for interest or mineral purposes. The land is cost-effective since maintenance costs are relatively cheaper. Real estate in land may include farms, ranches, orchards, undeveloped land, commercial land, and recreational places.