What is Real Estate? Meaning, Types and Characteristics

May 28, 2024 in Property Guide

What is Real Estate? Meaning, Types and Characteristics

What strikes your mind when you hear the word 'real estate'? Casually, the image of land, villas or even commercial properties would strike your mind, wouldn't it? Most people just think about residential and commercial properties while talking about real estate. 

One of the most fascinating aspects here is that real estate is more than that. Real estate is an umbrella term. It holds information about various things under it. Summing the definition of real estate in a few words has always been difficult. 

Real estate has certain economic and physical characteristics. It's real estate that brings about development across countries. Moreover, it also has several investment opportunities too. This article will explore in detail real estate meaning and all that you need to know. 

What is Real Estate?

  • Real estate means that it is a land that has certain legal rights. In terms of business, real estate can be seen as a form of investment. It comprises buildings, homes and lands. Many would agree that real estate investment is one of the best forms of investment. 
  • If you want long-term investment stability, you must consider real estate investment. Whether you want a commercial or residential property, real estate investment can be of great help. The real estate prices are however hugely influenced by the market conditions. 
  • Compared to stocks and mutual funds, real estate is still a less volatile investment in India. Being a tangible asset, real estate is seen as a safe investment. It is important to note that real estate, real property and land are different from each other. 
  • Real estate includes land and human construction. Any form of construction on land can increase or decrease its value. When there are fluctuations in price and demand, it becomes a part of real estate. However, real estate has some ownership and property rights as well. 

Types of Real Estate

Contrary to the belief that there are two types of real estate, there are more. How you use the real estate also has a significant role in determining the type. Each of these real estate types has its own benefits to offer. 

Some of the prominent real estate types that you can invest in are as follows:

Residential Real Estate

  • Residential real estate is a property where people stay. It may include buildings, condominiums, duplexes and townhouses. Before investing in residential real estate, you must check what your requirements are. 
  • It is advisable to buy residential real estate close to basic facilities like schools, hospitals and markets. The location has a huge role to play in choosing residential real estate. Itis advisable to choose spacious properties. You must carefully assess the neighbourhood before you invest. 
  • When you are buying residential real estate , it is advisable to check the long-term investment capacities as well. Over the years, the neighbourhood would change. Therefore, analyzing the same before is an important factor to consider. 
  • If you invest in residential real estate, you will get the opportunity to rent it. The rental yield via residential real estate is quite high. 

Commercial Real Estate

  • Another prominent type of real estate is commercial real estate . There are different types of commercial real estate like shops, offices, shopping malls, theatres and more.
  • Investing in commercial real estate will play an important role in getting a better return on investment. With the help of commercial real estate, you will generate regular income through cash flow. If the value of property increases, it will help you generate a good return on investment. 
  • Furthermore, with commercial real estate you will receive certain tax benefits too. The property owners can write off mortgages and property taxes.  

Industrial Real Estate

  • Any land that is used for manufacturing, shipping or storing for industrial purposes is deemed as industrial real estate. Industrial real estate acts as a support for manufacturing companies. Most operations of manufacturing companies take place in industrial real estate properties only. 
  • Compared to commercial real estate trends, industrial real estate is a much bigger place. Industrial real estate also plays an important role in generating a regular cash flow. 
  • Industrial real estate is one of the dearest assets in today's time. If you're investing in industrial real estate, you are likely to get a better return on investment. Furthermore, you are likely to get a longer lease with industrial real estate. 


  • Lands and plots are quite popular real estate. Land as a real estate property has physical characteristics, especially in terms of immobility. Every land has its separate characteristic. It also features geographical differences. 
  • Most people in India purchase lands and plots as a form of real estate investment. They can either build a property or use it for agricultural purposes. However, before investing in land, it is important to keep the finances clear. It is always advisable to keep a look at the paperwork and ensure that the land is not disputed. 
  • It is advisable to never acquire the land in a hurry but to do proper research about the same. You can speak with a professional real estate developer about the lands and then invest accordingly. 

Fix and Flip Properties

The residential properties that are available at a lower price are known as fix and flip properties. These properties usually have lesser maintenance too. If you are buying fix and flip properties, you will have to invest in renovation as well. 

Mix and Use Properties

There are certain properties that you can mix and use too. These are usually a combination of commercial and residential real estate. This is to ensure diversification and lower the risk of property failure. It will be used for mixed usage. 

Characteristics of Real Estate

Investment in real estate needs to be done with proper research. Whether you invest in residential or commercial real estate, it is advisable to keep a check on the basics. If you're investing in real estate, it will help you receive good returns. 

The characteristics of real estate are financial or physical. The physical features of real estate are determined on the land. The economic features of real estate are determined by the value of the land. 

Some of the major real estate characteristics that you need to check are as follows:

Economic Characteristics

The economic real estate characteristics are established by different factors. These include:


When there is limited land available for occupancy, the demand will be high. This type of land is available in certain areas


The value of a property can significantly change depending on its usage. It will also be influenced by the neighbouring properties. 


Location is one of the most important characteristics of any real estate. The property value across different locations will be different. The price of real estate will significantly vary depending on geographic locations. 

Social Characteristics

Below are some of the major social real estate characteristics:


A land is indestructible. It can be fractionalised, and its ownership can change, but it can not be removed/destroyed. 


Every land will be unique. No two lands will be the same and have their own unique characteristics. They will have their own design and layout. These unique characteristics are what make the land unique. 



Real estate is a very diverse industry. If you are careful enough, you might be able to generate a significant amount of money. With the help of real estate investment, you will be able to get returns. However, it is important that you do some research on real estate properties. 

The type of real estate you invest in will eventually determine its value and returns. You can work closely with professional real estate developers like Adani Realty to know what works out the best for you. Here, you will get a wide range of properties.

So, if you are in search of high income generating properties, Adani Realty is the right place to be. 

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