The term real estate means real, or physical property. Real estate is “property consisting of land and buildings on it” It is the property, land, buildings, air rights above the land and underground rights below the land.
The major categories of real estate are residential, commercial, industrial and agricultural.
Industrial real estate includes factories, warehouses and storage facilities. Industrial buildings can be used for manufacturing, storage, production, research, segregation, distribution and packaging goods. Some industrial buildings fall under commercial real estate due to their purpose of operation.
The residential sector focuses on homes commercial sector focuses on real estate used for business purposes (like hotels. Schools. Office space); industrial sector focuses on real estate used for manufacturing, production and storage; and the agricultural sector focuses on crop and animal farming.
The types or categories of real estate are further discussed in the p.d.f document right at the concluding part of this blog post.
Other highlights worth knowing about:
- In choosing a real estate market segment you need to consider the location, size, purchasing power, market profitability, competition, availability of resources, demand and supply.
- one thing is paramount when it comes to the real estate market; location, location, location – it all boils down to where the property is located. The location of the property is just as important as the property in question.
- The need for real estate cannot be left out of the development process. Although it can be said, in some cases, that real estate depends on development one cannot overlook the risks associated with real estate investment
- Every location presents its own opportunities; an idea may be brilliant and more feasible in one location than another. Proximity to certain variables like social amenities and central business districts plays an important role when considering an opportunity.
- Unlike certain goods and services, real estate results in insurance cost, taxes (income tax, ground rents) and permits (fire, safety, and building permits). Having pre-knowledge about these variables helps a lot especially in defining and or redefining real estate ideas. Usually industrial and commercial real estate require more permits than residential real estate
- Also, the nature of an area calls for flood during rainy seasons. This condition initiates real estate opportunities particularly to curb the problem. In such instances, designs are customized to suit the soil type (e.g. retaining walls) and landscape of the area.
This document further provides insight on the relation between investing in real estate and its associate factors such as:
- Population Growth
- employment and unemployment rate
- Price to rent ratio
- Vacancy rate
Click to Download this resource which lays out the fundamentals of identifying real estate opportunities in Ghana. This document was prepared by Lucy Ansah, a real estate professional looking forward to specializing in interior design.