Real estate includes real property including the buildings and land on it, and its accompanying natural resources like water, rocks or crops; and its intangible assets like patents, rights-of-way, title or trust deeds, liens, claims of interest, claims of tenants, franchises etc. immovable real estate of this kind; fixed property; an interest in real estate, buildings or housing constructed on it and the structures associated therewith; or personal property owned by an individual or group. However, real estate may also include real property used for business, for the performance of obligations, for earning rents, for financing acquisitions or for speculative purposes.
The term ‘real estate’ encompasses a wide variety of economic activities related to real estate such as development of real estate, construction of real estate, leasing real estate, selling real estate, buying real estate, using real estate as collateral for borrowings, owning real estate as an asset, etc. Real estate markets have a considerable impact on the property market and financing markets, both locally and internationally. In addition, real estate investment and financing remain a significant force in international finance.
There are various kinds of real estate including single-family residential property and multiple-family residences, residential ranch and rural land use, commercial land use and industrial property and vacant land. Single-family homes stand for the quality, resale value, and architectural style and features of a single parcel of land. Multi-family residences and condos combine the advantages of single-family homes with the conveniences of condominium living and are a relatively inexpensive alternative to single-family dwellings. Vacant land provides a flexible supply of real estate and a ready market for the development or renovation. Improvements to existing vacant land make available additional real estate and the net proceeds of these improvements are used for capital investments and/or financing home improvement projects.
Residential real estate is the most popular type of real estate purchased by most Americans. Nearly everyone lives in a suburban subdivision or city and many suburban communities have more than one million residents. Subdivisions contain large tracts of land with varying levels of development and access to public transportation systems and parks and recreational areas. Examples include apartment complexes, townhouses, condominiums, row homes, town homes, duplexes, condos and mobile homes.