Unravel all types of real estate; from residential to recreational!
Real Estate, also known as real property, is the land with any improvements or resources attached. It could include water, trees, buildings, roads, or anything. In business terms, real estate means producing, buying, and selling property.
In a broader sense, real Estate includes the earth’s surface and everything natural or artificial additions attached to it, such as trees, minerals, water, buildings, houses, roads, etc. Moreover, it includes all the ownership rights, including the right to possess, sell, and lease property.
However, the most common type of Real Estate familiar all around the world is residential. Most frequently in India, residential real Estate seeks more investments as compared to other types of real Estate. Nevertheless, neglecting other types of real Estate might slip the high rate of profit from your hands.
Let us have a look at five types of real Estate in India
- Residential Real Estate
The residential Estate is the area developed for people to live. It is a sure bet for stakeholders to invest in as the demand and supply of homes are always compatible. Residential Real Estate includes both constructed and resale homes/properties for buying, selling, and leasing.
Single-family residences (SFR) include condominiums, cooperatives, townhouses, zero lot line developments, etc. Residential properties also consist of Multifamily resident apartments in 2-4 units; duplex, triplex, 4-plex are considered residential properties.
Residential properties are financed with residential loans and have different underwritings. It is India’s most commonly used real estate type, offering exclusive rental and exponential growth for realtors.
- Commercial Real Estate
Commercial Real Estate (CRE) is another well-known investment option in India. It is a kind of real Estate that deals with business or income-generating purposes. It provides more workspace than living space. Commercial real Estate includes various categories such as retail, hospitality, office buildings, and multifamily properties. Commercial Multifamily Properties include garden apartments, low-rise, mid-rise, and high-rise apartments.
Office properties can include single-tenant, multi-tenant, specialty/medical office, dental office, or other specific use. These are typically for a professional environment and may or may not always deal with the general public.
The retail properties category consists of shopping centers, shopping malls, strip malls, regional centers, or any space that is specifically designed for retailers to conduct business with the general public.
Whereas hospitality comprises large hotels, small motels, extended-stay centers, full-service resorts, and tourist properties.
Commercial real Estate is riskier for beginners as it needs a higher capital than residential real Estate. Commercial real estate properties are financed with commercial loans. However, it is Significantly providing the much-needed infrastructure growth in India in upcoming years and potential and rental income appreciation for investors.
- Industrial Real Estate
Industrial real Estate is all lands and buildings which accommodate industrial activities like production, manufacturing, assembly, warehousing, research, storage, and distribution. Industrial properties are closely associated with warehouse properties, such as light warehouses, distribution centers, and other places where manufactured goods are stored until they are shipped or sold. Also, Industrial properties have different zoning ordinances depending upon industrial activities.
Industrial real Estate provides steady cash flow to investors. It is cheaper to operate and maintain as compared to residential properties. It is a crucial support to the global economy.
- Land Real Estate
This is one of the cheapest and most secure real estate properties in India. The land property includes the surface of the earth and resources beneath its surface, such as plants, minerals, boulders, etc. Land property is the baseline for all types of properties. It includes undeveloped properties, vacant land, agricultural land (farms, orchards, ranches, and timberland).
Land real estate investment has its unique benefits like you don’t have to renovate it, no dealing with tenants’ problems, no need for many physical site visits, etc. It has very little competition indirectly considered as a safer and long-term investment option for stakeholders.
- Recreational and Special Purpose Real Estate
Recreational Real estates have property or buildings not occupied or used permanently. They are specifically for outdoor recreational activities. It includes stadiums, sports complexes, marinas, golf courses, or country clubs, any space where people can enjoy leisure activities. However, recreational properties have less appearance in India. But with the growing development, it will see a spike in the real estate market.
Whereas, Properties used by the public, such as cemeteries, government buildings, libraries, parks, places of worship, and schools, are Special Purpose Real estate. The special purpose properties are limited to one type of facility use. In simpler terms, special purpose property is a facility that is not easily converted to other uses.
Although, this type of real Estate has more income stability and is not directly affected due to a dull financial market.
To conclude
Real Estate is a vital source of economic growth. It gives a 6-7% share of India’s GDP. India’s real estate sector is expected to reach a market size of $ 1 trillion by 2030. Smart investment in any type of real Estate will give you high-profit revenues and rental income. Considering the above real estate types will open doors for your real estate investment ideas. It is advisable to seek research and expert advice before imbuing money into real estate.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
