An Overview of Entire Real Estate Sector
The real estate sector is broadly categorized into three major sections which are Commercial real estate, Residential real estate, and Land. All these three sections have their own sub-categories also under which the entire real estate sector is developed and regulated. The rules and regulations also vary depending on the type of category and its location. The real estate sector offers the most promising platform for investments due to the rising prices, dwelling requirements, and globalization of the commercial sector. This segment will provide a complete overview of all types of categories along with their scope and recent developments which will give you enough insights to invest as per your understanding and develop better investment instincts.
Commercial Real Estate
Commercial real estate is a broad term used to describe a property that is bought with an intent to develop buildings for commercial use. Mostly it consists of office buildings and skyscrapers. There is a common practice to offer these buildings to tenants to run their businesses which is an effective measure for greater stability in cash flow. Agreements are made in this regard to ensure proper functioning between both parties where each and every aspect related to improvements, fixtures, and utility systems are discussed well through different clauses. The commercial property is also further categorized into the following sub-categories:
- Retail: This includes shopping malls, shopping complexes, small shops, and other retail storefronts. It depends on the property owner on how the tenants will pay the decided amount for the kind of property they have taken for use.
- Office: For startups, small businesses, and even MNCs, require a particular space to work which is developed in form of offices.
- Industrial: Industries have various departments through which they operate their different processes like warehousing, manufacturing, production, storage units, and other purposes for which space is required.
- Multi-Family: These are the apartments and other housing projects for more than one family use which are developed with a motive to earn profits by offering these premises for use at a certain price. Flats/apartments in Gurgaon have gained much momentum in recent years.
Residential Real Estate
This is the most preferred segment in the real estate sector which offers various projects under it to be developed for residential purposes. With the growing need to shift to major cities for employment purposes, people often need a place where they can dwell with their families. This is further subcategorized into:
- Single Family Use: Single-family homes are the most common form of real estate investments which has strengthened this sector with its regular and increasing demand. Mostly in form of duplexes, these can be self-managed or managed by the property owner on its behalf.
- Vacation Housing: These are much similar to the above-mentioned category but with a different motive. These are developed as fully furnished houses which are available for use for a short term use like for vacations.
- Condominium: These are housing projects much similar to an apartment or a residential house which comprises different floors. Preferred by most of the people who want an independent lifestyle with a spacious housing scheme.
- Townhouses: These are residential projects which are built in a row-wise order with one house just adjacent to the other. This type of housing scheme is getting much attention in India also. Apart from flats/apartments in Gurgaon, people prefer this nowadays.
This is another one of the most preferred and largest real estate investments. The infrastructural developments and road connectivity have further boosted its price and value to the best level in recent times. Vacant land offers a promising base for all the above-mentioned sectors to start with their projects with it and hence, it is categorized into:
- Commercial development land: It offers opportunities for companies and organizations to set up their projects for their different departments. A major employment generator as it includes the involvement of architects, laborers, and contractors.
- Residential development land: As mentioned above, it offers space for all the residential projects to be developed on it.
- Agricultural land: This category refers to the land piece which is utilized to carry agricultural and farming practices. The owner also enjoys huge tax rebates by the government in order to maintain and upkeep its fertility.
- Mining Land: These lands are required by the government itself to offer them to contractors for carrying on various mining processes for different materials like coal, oil, iron, sand, and other utility minerals.