What is Real Estate?

| Created : 2023-01-18
| Updated : 2024-05-25
Created : 2023-01-18
Updated : 2024-05-25

Real estate is land and anything permanently attached to it, such as buildings, houses, fences, and bridges. It is a valuable asset because it is immovable and connected to the land.

Real estate also includes the rights associated with owning land, such as the right to use it, sell it, or lease it to others.

Examples of real estate:

  • Land
  • Buildings
  • Houses
  • Fences
  • Bridges
  • Streets
  • Utilities
  • Sewage
  • Water resources
  • Trees
  • Minerals

Characteristics of real estate:

  • Immovable
  • Connected to the land
  • Has financial value
  • Subject to property rights

What does Real Estate Mean?

The term "real estate" was first recorded in the 1660s, and it comes from the Latin words "realis" (meaning "existing") and "status" (meaning "state" or "condition").

The general use of "Real Estate" refers to land or a permanent structure on land such as a home whether it is naturally made or human-made. Real estate means real property, which is attached to land permanently.

What are the Types of Real Estate?

Real estate is land and anything permanently attached to it, such as buildings, houses, fences, and bridges. It can be classified into different types, including:

  • Residential real estate: This type of real estate is used for housing, such as single-family homes, apartments, condos, and townhouses.
  • Commercial real estate: This type of real estate is used for business or investment purposes, such as office buildings, retail stores, restaurants, and hotels.
  • Industrial real estate: This type of real estate is used for manufacturing, production, distribution, and storage.
  • Public purposes real estate: This type of real estate is owned by the government and used for public purposes, such as schools, parks, libraries, and hospitals.
  • Land: This type of real estate is undeveloped or has only been partially developed.

What is Apartment Real Estate?

Apartment real estate is defined as a property with many units in a single building. Apartments are a popular type of housing because they are frequently less expensive than single-family homes and include a variety of amenities such as shared laundry facilities, swimming pools, and fitness centers.

What is a Semi-Detached (Attached) House?

Semi-detached houses refer to detached houses that have a common garden with other houses or are adjacent to other buildings.

What is a Detached House?

Detached houses are a blessing for those who do not want to be trapped in the small rooms of the apartments. These houses are much more advantageous than an apartment. Although these houses are spacious, they are more expensive than apartments.

Detached houses are houses that do not connect with the surrounding houses and usually have their own garden.

What is a Single Family Dwelling?

Single-family dwellings are typically detached structures that sit on their own individual lots or parcels of land. They offer privacy and autonomy for the residents, as they are not connected or shared with other households. 

What is a Multi-Family Dwelling?

A multi-family dwelling is any residential property that holds more than one residential unit. A duplex with many dwellings, townhouses, or apartment complexes is a good example of a multifamily house. 

What is a Portable House?

Portable buildings can be used for long-term, temporary, or permanent facilities such as construction camps, schools and classrooms, civilian and military housing, and industrial facilities.

 A portable structure is a prefabricated structure consisting of repeated sections called modules.

What is a Mobile House?

A mobile house is the name given to houses that have been prepared with different equipment compared to a normal building, have a smaller square meter, and can be moved at any time.

They do not stay fixed in one place, they are designed accordingly while being installed, and the owners of the house can transport their house wherever they want with a freight vehicle.

What is a Townhouse?

A townhouse is a multi-floor apartment complex consisting of two or three floors with common side walls. These houses are usually designed in the same architectural style.

Each building is separate from the one in which it is located and it is intended for a family to live in it. It has a separate entrance, a small plot, and a garage.

What is Twin House?

Twin houses are a type of housing that is formed in such a way that there is a repetition or often symmetry of the same plan type on both sides of a common wall. Unlike a detached house, it allows for more efficient use of small plots.

What is a Penthouse?

A penthouse is an apartment or unit located on the top floor of an apartment building, condominium, or hotel. It often differs from other apartments by its luxurious features. The term actually refers to a separate small 'house' built on the roof of an apartment building.

What is a Hotel?

The hotel is a facility that provides accommodation and catering services to passengers and tourists for a certain fee.

What is a Shopping Center?

A shopping center, also known as a shopping mall or shopping precinct, is a large commercial complex that houses multiple retail stores and other businesses. It is designed to provide a wide range of shopping, dining, and entertainment options in a single location.

What are Restaurants and Cafes?

A restaurant is a place where food and drinks are prepared and served to customers for a fee. 

What is an Office Unit?

An office unit is used as a workplace, apartment, office, place of purchase, or sale.

What is a Real Estate Broker?

A real estate agent or a real estate broker is the name given to the institutions that carry out transactions such as buying, selling, and renting villas, houses, land, and similar properties within the framework of certain rules. It serves potential customers or new customers by creating its own portfolio.

How to Invest in a Real Estate?

Investing in real estate is one of the most preferred investment options for people who want to evaluate their savings.

The best way to invest in real estate is to analyze all one's savings in the best way possible and invest them in accordance with these standards.

In addition to these, it is a very accurate decision for a person whose field of business is agriculture to evaluate his savings on agricultural land. Investing in real estate in Turkey is much preferable in the real estate sector in the world.

Can Turkish Citizenship Be Obtained with Real Estate Investment?

Yes. By investing in real estate in Turkey, Turkish citizenship can be obtained. The conditions of Turkish citizenship with real estate investment are listed below:

  • Purchasing a Property Worth at Least $400,000
  • A Capital Investment Worth at Least $500,000
  • Create at Least 50 Employees or Start a Firm with a Capital of $500,000
  • $500,000 or Equivalent Deposit in a Turkish Bank Account
  • Buy the Internally Held Public Debt of At Least Worth $500,000
  • Real Estate Investment Fund Participation Share or Capital Investment Fund Participation Share.

What are the Advantages of Real Estate Investment?

Real estate investment can be a great way to earn passive income, build wealth, and protect your assets. Here are some of the advantages of investing in real estate:

  • Regular cash flow: Rental properties can provide investors with a steady stream of income.
  • Appreciation: Real estate values tend to increase over time.
  • Tax benefits: There are a number of tax benefits available to real estate investors, such as depreciation and mortgage interest deductions.
  • Tangible asset: Real estate is a tangible asset that can be used or leased, unlike stocks or bonds.

What are The Disadvantages of Real Estate Investment?

Real estate investment is not without its risks. Here are some of the disadvantages to consider:

  • Location risk: One of the most significant aspects to consider when purchasing an investment property is location. Purchasing in a terrible location can result in an unsuccessful investment.
  • Negative cash flow: A real estate investment might generate negative cash flow. This might occur if your rental revenue is insufficient to cover your expenses, which include mortgage payments, taxes, and insurance.
  • Vacancy risk: If your investment property is empty, you will receive no rental income. This can be a significant financial burden, especially if the property is mortgaged.

How Does the Real Estate Industry Work?

Real estate is a vast industry that includes the purchase, sale, and management of real estate. It also involves new property development and real estate transaction financing.

The following are some of the most important positions and careers in the real estate industry:

  • Real Estate Development: It is the identification and development of land for new residential, commercial, or industrial properties. To bring their designs to life, they collaborate with a wide range of specialists, including architects, engineers, and constructors.
  • Real Estate Sales and Marketing: Real estate agents assist buyers and sellers in locating, purchasing, or selling property. They promote properties, negotiate contracts, and complete transactions.
  • Real Estate Brokerage: They hire and manage real estate agents and offer assistance and services to their agents and clients.
  • Real Estate Property Management: This entails supervising the upkeep and operation of rental properties. They collect rent, screen tenants, and take care of repairs and maintenance.
  • Real Estate Lending: It is the provision of financing for real estate transactions by real estate lenders. They collaborate with borrowers to determine creditworthiness and grant loans.