DEFINITION OF REAL ESTATE AND ITS TYPES
What is the meaning of “real estate”? According to the Collins Dictionary, “real estate” is property in the form of land, buildings, rather than personal possessions. The term real estate means real, or physical, property. “Real” comes from the Latin root res, or things. Others say it is from the Latin word rex, meaning royal, since kings used to own all land in their kingdoms.
Four types of real estate
But, the question here is , do we know about the types of real estate ?
There are 4 types of real estate we should know such as the following:
- Residential Real Estate:
Any property used for residential purposes. This includes both new construction and resale homes. There are quite a number of residential property types in Malaysia to-date, with the common ones being bungalows, townhouses, semi-Ds, terraces, apartments, and condominiums.
- Commercial Real Estate:
Any property used exclusively for business purposes, such as shopping complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centres, stores, and theatres.
- Industrial Real Estate:
Any property used for manufacturing, production, distribution, storage, and research and development. For instance, the factories, power plants, and warehouses. Apartment buildings are often considered commercial, even though they are used for residences. That’s because they are owned to produce income.
Includes undeveloped property, vacant land, and agricultural land (farms, orchards, ranches, and timberland).
- Special Purpose:
Property used by the public, such as cemeteries, government buildings, libraries, parks, places of worship, and schools.