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What is Real Estate ?

Real estate is the property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, or physical, property. “Real” comes from the Latin root res, or things. Others say it’s from the Latin word rex, meaning “royal,” since kings used to own all land in their kingdoms. You can check it out more here.

Definition by Investopedia “Real estate is property made up of land and the buildings on it, as well as the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water, and any additional mineral deposits”

Real estate is a tangible asset and a type of real property. Real property examples include land, buildings and other improvements, plus the rights of use and enjoyment of that land and all its improvements. Renters and leaseholders may have rights to inhabit land or buildings that are considered a part of their estate, but these rights themselves are not, strictly speaking, considered real estate.Real property is not the same thing and should not to be confused with personal property. Personal property includes intangible assets like investments, along with tangible assets such as furniture and fixtures like a dishwasher. Also, even renters may claim parts of a home as personal property, provided you bought and installed the property with the lessor’s permission.

Types of Real Estate

There are several types of real estate, each with a unique purpose and utility. The main categories are:





For anyone looking to understand how the industry works and what each of the major categories represents, the explanations below will be a helpful guide.


The land is considered to be the baseline in the real estate sector. It not only includes vacant land, but also farmland, underdeveloped land property or early developed land, and land that can be reused. Developers acquire land and combine it with other properties (called assembly) and rezone it so they can increase the density and increase the value of the property. It is a branch of real estate investment that is gaining ground as a major part of capital budgeting analysis. To achieve that they might need capital from interested investors. This is why real estate developers tend to take the help of financing solutions experts like Lincoln Frost who can help them acquire funds to start the real estate project. Real estate is basically defined as immovable property such as land and everything permanently attached to it like buildings. Land Investment has historically been the forte of large development companies, rich farmers or wealthy individuals. It can be a profitable business if proper development of land is undertaken. Land investment is referred to as a long term investment and with land prices on the rise in many parts of the world, it is said to be the safest and smartest way of investing ones money.

Capital gains can easily be realized from land when land price increases. The most striking feature of land investment is that investment takes place in a tangible asset which the investors can readily put into use. It is a branch of real estate investment which is gaining ground as major part of capital budgeting analysis. Real estate is basically defined as immovable property such as land and everything permanently attached to it like buildings. It is essentially at this juncture that land as an asset differs from real estate as it does not necessarily includes buildings and the attachments to the land.

Land is perhaps the most basic asset that we want to invest in and may include vast open tracts with no significant estate on it. The job of developing the land lies with the developer, and with proper care to include modern houses and the associated amenities, it will significantly appreciate its value. Land situated close to developed areas will cost more as opposed to those in less developed areas. Land developed for commercial purposes and those developed for building residential complexes will have different prices and tax implications, if any.

Investing in land can be profitable as there is limited supply of land and the purchaser can really sell dear if he wants to. Besides, there is the short to medium term possibility of exceptional returns, and property values can be readily increased by erecting modern world class amenities as already mentioned.

Real property as opposed to personal or movable property is characterized by the right to transfer the title to the land whereas title to personal property can be retained. The investment in real estate essentially depends on the risks associated with it, that is to say, even if the venture succeeds when the future stream of income will accrue to the investor and the alternative investment opportunities. Real estate investment or investment in land can be attractive if viewed as a business opportunity; it can generate rental income, using it as collateral to secure a loan for a business venture, to offset otherwise taxable income through cash savings on tax-deductible interest rate losses, or simply from the profits garnered from its resale.

Land investment, while may not produce instant gratification as a real estate or home purchase does, can be extremely lucrative in the long run. With environmental groups raising a hue and cry over the lack of care towards basic environmental needs, environmental issues are some of the concerns plaguing land or real estate developers or investors.

Land also includes the plots. In Pakistan we have vague system of registry and land transfer which is main cause of disputes resulting in long and tiring court proceedings. To overcome and avoid these issues society and housing schemes culture developed. Like DHA, Bahria, CDA and other private private housing schemes are established where transfers are easy and disputes are minimum.

Agricultural land investment is one of the most profitable investments due the rising food prices worldwide. For agricultural land investment in Pakistan, you need to decide which crops you want to produce.

Agricultural land has long been considered to be one of the most secure forms of investment, renowned for being a safe haven and held in the same regard as gold and diamonds despite its relatively low returns on capital. Yet agricultural land has much more to offer investors than just grazing livestock or growing cereals.

Mostly it is good to invest in agricultural which is uncultivated and make it cultivated and sell it.

Land or Morabas can be given on lease or one can himself grow crops or vegetable and sell in the market.

2. Residential

Residential real estate includes undeveloped land, houses, condominiums, and townhouses. The structures may be single-family or multi-family dwellings and may be owner-occupied or rental properties. There are also, duplexes, triple-deckers, quadplexes, high-value homes, multi-generational and vacation homes. Homeownership, also known as owner-occupancy, is the most common type of real estate investment.

Now that we’ve outlined the four main categories, let’s explore some specific examples of different types of real property.

Single-family dwellingAny home designed for only one family. It may include Bungalow. The meaning of the word bungalow varies internationally. … In North America and the United Kingdom, a bungalow today is a dwelling, normally detached, that may contain a small loft. It is either single-story or has a second story built into a sloping roof, usually with dormer windows (one-and-a-half stories).

A two-floor house with internal stairs can be called a duplex. Usually, such dwellings are planned well –different types of rooms are allocated to different activities. For instance, an entire room might be dedicated to office work–it can be called a workstation, where the space could be made extremely functional by using different types of fixtures and furniture pieces (bought from Besides this, a space can be allocated to indoor gardening– it might as well encourage recreational activities like painting, craftwork, or yoga.

However, the above-mentioned house might be different from a two-floor house with external stairs–this would generally be designed for two separate people to live in them.

That said, remember, independent houses or bungalows are not called duplexes. Duplexes are considered residential income property, as opposed to a single family home. These properties are typically driven more by rental income. Since rents typically don’t fluctuate all that much, prices for income properties are typically more stable. The bungalow is a common term applied to a low one-story house with a shallow-pitched roof. Moreover, when real estate investors see an opportunity to invest, they think of how to renew the property and resell it. But sometimes, hard loans can be hard to acquire and this is where lending entities like Pine Financial Group can prove useful. When the required network meets much needed capital, it is a win-win. If you want to continue in this line of work, and want more capital, you might want to get in touch with a hard money lender or consider taking loans, to get started.

Those looking to invest in residential properties or procure a home for themselves can look at sites similar to this one here. By doing so, they would be in a better position to know where they could invest and the type of property they would be looking at.

A typical Bungalow

Multi-family dwellingAny group of homes designed for more than one family. A 2 family home or house, as a general term, means that there are two separate living units or apartments. A duplex is a specific type of construction of a two family house, where the living units are side by side with common walls. Generally, the duplex will have two separate entrances directly to the outside.

Multi-family residential (also known as multi-dwelling unit or MDU) is a classification of housing where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex. Units can be next to each other (side-by-side units), or stacked on top of each other (top and bottom units). A common form is an apartment building. Sometimes units in a multifamily residential building are condominiums, where typically the units are owned individually rather than leased from a single apartment building owner. Many intentional communities incorporate multifamily residences, such as in co-housing projects.

Multi family dewelling

Split-level house is a design of house has two nearly equal sections that are located on two different levels, with a short stairway in the corridor connecting them.

AttachedAny unit that’s connected to another (not freestanding)

Multi-family houseOften seen in multi-story detached buildings, where each floor is a separate apartment or unit.Multi-unit properties can be primary residences or investment properties. A 2-unit property for example may be occupied by the owner in one unit, and a tenant in the other unit, defining it as a multi-unit primary residence. Or a 4-unit property may be solely occupied by tenants, defining it as a multi-unit investment property. Multi-unit properties carry additional financing adjustments to fee, more substantial for 3-4 unit properties.

Condominium (Condo) A building with individual units owned by individual people.A condominium is defined as the individual ownership of a building with access to common areas owned by all residents within the complex. Association fees must be paid to maintain, repair, and improve the common areas shared by residents, which typically include a pool, spa, tennis courts, walking paths, and more.

ApartmentAn individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Why not secure yout home with masterslocksmith services here as they are also trusted security experts, servicing all over South Florida region. Often seen in multi-story apartment buildings. Electronic Locksmith helps hospitality businesses run safely and efficiently with their range of electronic door locks and systems.

The main difference between a condo and an apartment is ownership. This also impacts the management of the property. While condos are usually managed by a Homeowners’ Association (HOA), each individual unit has a separate owner. You have the option to purchase a condo, as you would a house. If you end up renting a condo, your property owner will differ from the unit next door. Mostly you will find apartments rather than condos in Pakistan.

Mariner Property Islamabad

Detached houseA free-standing building not connecting to anything else (a stereotypical “home”)

VillaA building with only one room and typically a steep pointy roof. A villa is a type of house that was originally an ancient Roman upper-class country house. … Then they gradually re-evolved through the Middle Ages into elegant upper-class country homes.

Hut A dwelling typically made of raw materials such as bamboo, mud, and clay.


Farm houses/country house-There are lots of people who dream of owning a farm house. However the harsh reality is, that it’s tons of work, quite often not worth its price. Look through the pros and cons well before you actually buy a farm or country home.

Farm House
Farm House

Second Homes (Vacations Homes) –

Second Homes, also known as “vacation homes” are residences typically found in recreation areas or resorts that serve as seasonal accommodation. These properties are in owned in addition to a primary residence, and can be condominiums, townhouses, or single-family residences. Vacation homes are common in hilly resorts like cottages in Muree and near the beach, and may be rented out to other vacationers while not in use.

cottages and resorts
cottages and resorts

Townhouses-A single-family dwelling typically made up of two floors that shares side walls with nearly identical properties.

Town houses
Town Houses

3. Commercial

Commercials Plaza
Commercials Plaza

Commercial real estate includes non-residential structures such as office buildings, warehouses, and retail buildings. These buildings may be free-standing or in shopping malls and strip malls, medical and educational buildings, hotels and offices.Commercial real estate is used for commerce and includes anything from strip malls and free-standing restaurants to office buildings and skyscrapers. It is often distinguished from industrial real estate, which is practical space used in the manufacturing of products.Buying or leasing real estate for commercial purposes is very different from buying a home or even buying residential real estate. Commercial leases are generally longer than residential leases. Commercial real estate returns are based on their profitability per square foot, unlike structures intended to be private residences.Moreover, lenders may require a larger down payment on a mortgage for commercial real estate then what is required for a residence.

Wikipedia define the Commercial property as “The term commercial property (also called commercial real estate, investment or income property) refers to buildings or land intended to generate a profit, either from capital gain or rental income. Commercial property includes office buildings, medical centers, hotels, malls, retail stores, farm land, multifamily housing buildings, warehouses, and garages. In many states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes.

Types of commercial property

Commercial real estate is commonly divided into many categories:

  • Shops – Includes Shops, be it a stand alone unit or in shopping plazas. Usually Roadside is good place for any shop. Shopping malls is new era concept having many shops in one building. Shopping mall with apartments above is the latest trend.
  • Office Buildings – This category includes single-tenant properties, small professional office buildings, downtown skyscrapers, and everything in between.
  • Retail/Restaurant – This category includes pad sites on highway frontages, single tenant retail buildings, small neighborhood shopping centers, larger centers with grocery store .
  • Multifamily – This category includes apartment complexes or high-rise apartment buildings. Generally, anything larger than a fourplex is considered commercial real estate.

Categories of Commercial Real Estate

  • Leisure : hotels, public houses, restaurants, cafes, sports facilities
  • Retail: retail stores, shopping malls, shops
  • Office: office buildings, serviced offices
  • Healthcare: medical centers, hospitals, nursing homes
  • Multifamily: (apartments) multifamily housing buildings

4-Industrial ( Logistics Real Estate)

Industrial Structures
Industrial Structures

Industrial estate includes factories, business parks, mines, and farms. These properties are usually larger in size and locations may include access to transportation hubs such as rail lines and harbors.

Industrial property, which includes storage, distribution, manufacturing, production and research and development facilities, is a key link in the global supply chain. Without industrial property, the global economy wouldn’t function. These properties are also a sought-after investment that generates strong and predictable cash flows.

What is industrial property?

Industrial property is a class of real estate like residential, commercial and retail-just a bit less glamorous. It doesn’t command the same center-stage attention as other types of real estate like residential developments or commercial officer towers. Industrial property includes:

  • Storage facilities
  • Distribution facilities
  • Manufacturing facilities
  • Production facilities
  • Research and Development facilities

Industrial property is a key link in the global supply chain and a sought-after investment that generates strong and predictable cash flows. Without warehouses and logistics distribution centers, which are key industrial property types, the global economy couldn’t function. Strategically located industrial property with easy and efficient connections to vital transit routes makes trade, e-commerce, and consumption possible.

What are the major factors that drive demand for industrial property? First, there’s consumption. Industrial property is essential to the movement of goods across geographies to end consumers. Then there’s trade. It is a key component of trade everywhere-helping to ensure the efficient flow of goods from makers to markets. Rising volumes of global and domestic trade are possible because of the interconnected web of manufacturers, shippers, truckers, distributors and retailers. As companies reshape their supply chains to compete in the 21st century, they turn to high-quality, well-located, efficient industrial properties for operating leverage and competitive advantage. Are e-commerce companies big users of industrial property?Yes. Simply put, no e-commerce company can function without the right industrial property. They are not just quiet places to store goods. Industrial properties are fulfillment and return centers. They are the launching pads for direct-to-consumer delivery. In many instances, the last mile begins at an industrial property.

Where are industrial properties located?

Industrial property can often be found on large plots of land near highway junctions, rail terminals, airports, seaports, and other key transportation hubs. But as e-commerce continues to grow, it is becoming more common to see industrial properties occupying smaller footprints near large population centers – or even in multi-story locations in large cities.

Article Sources

1-“Real Estate, What It Is and How It Works” by KIMBERLY AMADEO

2-“Real Estate” by Investopedia

3-From website

4-Land Investments BY ECONOMYWATCH



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