Real estate refers to land or property, its permanent features, and the rights surrounding its use and ownership. It encompasses everything permanent found on, under, or above the property, such as trees, water bodies, and minerals. In business terms, real estate can also mean the production, buying, and selling of land, buildings, or property.
Real Estate Examples
Real estate is a type of real property because it is tangible and, besides the land itself, covers improvements made or installed on the property, such as buildings, roadways, and septic systems. If a piece of land or property contains such features, it is referred to as ‘improved.’ That said, real estate can be unimproved too, with examples including everything from a single-family home in Arizona to a beach resort in Florida or an arid land in Africa.
Real Estate in the Economy
Real estate as an area of business is a crucial economic driver in the United States. The country uses statistics about monthly real estate projects (housing stats) as an economic indicator to study market growth trajectory. Similarly, homeowners, potential buyers, and realtors track the real estate market when making investment decisions.
How Does Real Estate Work?
Real estate is defined by its main characteristics: it is unique, immobile, and can be improved. It is also very versatile and can move from improved to unimproved within a short period. Additionally, real estate can change ownership as it can be bought or sold by and to private parties, corporate entities, and government bodies. The changes made in real estate – through ownership transfers and improvements – often have a direct impact on a country’s economy.
Real estate can refer to land or property and the improvements made to it or the production and transfer of ownership of property. Regardless of the definition, real estate plays a significant role in the US economy and is closely monitored by property owners, governments, and potential investors throughout the year.