Real estate refers to properties consisting of the lands and buildings on it, including natural resources.
It is a form of asset that has limited liquidity relative to other investments(e.g stocks or bonds that can openly trade on financial markets).
There are different types of real estate such as:
- Residential real estate
- Land real estate
- Commercial real estate
- Industrial real estate
Understanding Real Estate
People often use the terms land, real estate, and real property interchangeably, but there are some subtle distinctions.
- Land refers to the earth’s surface down to the center of the earth and upward to the airspace above, including the trees, minerals, and water.
- Real estate is the land, plus any permanent man-made additions, such as houses and other buildings.
- Real property—one of the two main classifications of property—is the interests, benefits, and rights inherent in the ownership of the real estate.