Real estate is property made up of land and any buildings that stand on it, as well as

the natural resources within its boundaries, such as water and crops. It’s generally

divided into four categories: residential, commercial, industrial and land. The real

estate industry is important to the economy because people use it to buy and sell

houses, apartments, and businesses. It can also be an investment, or a way to get a

good return on money invested in something that will appreciate in value over time.

Real estate professionals make a living by selling their services to those involved in

real estate transactions.

The residential real estate category is the one most familiar to average people, and

it encompasses structures designed for domestic residence, including single-family

homes, duplexes, condos, townhouses, and bungalows. This type of real estate

tends to be most affected by the laws of supply and demand. When demand for

residential properties outpaces supply, prices rise. When demand is low, prices fall.

Eventually, when the demand for residential real estate is strong enough, there is a

balance of supply and demand, and prices stabilize.

Commercial real estate includes any structures designed for business use, such as

office buildings, malls, shopping centers, warehouses, and medical centers. This

type of real estate is usually more affected by the economy than the other

categories, because it depends on consumer spending patterns to thrive. Businesses

need space for their operations, and consumers need places to shop, work, and eat.

Industrial real estate includes any structures used for industrial production or

research and development. This category of real estate is primarily impacted by the

economy, because the success of manufacturing, transportation, and warehousing

depends on economic growth. The most valuable industrial real estate is located in

areas with easy access to major highways and railroads, which can help companies

get their products to market quickly.


Many people who are interested in the field of real estate choose to become real

estate agents or brokers. These professionals are trained to facilitate the buying and

selling of real estate, and they make their living by charging a fee to those who hire

them. Agents and brokers work closely with each other to secure the best possible

deals for their clients. Also read

Investors buy and sell real estate for profit, and the profits they generate depend on

their profit goals and investing strategies. Some investors seek quick profits by

“flipping” houses, while others invest for longer-term gains through rental income

and gradual increases in property values over a period of years.


Real estate developers are a group of experts who turn raw land into profitable,

marketable developments — residential, commercial, or industrial. They analyze site

conditions, obtain financing, oversee construction, and promote the finished project

to potential buyers. In addition, they often collect and review market data to help

their clients make informed decisions about purchasing or renting a property. Data

on new housing starts, for example, can give investors clues as to the direction of

the housing market and the economy.