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{{Short description|Subset of land that has been legally defined and the improvements to it made by human efforts}}
'''Real estate''' or [[immovable property]] is a [[law|legal]] term (in some jurisdictions) that encompasses land along with anything permanently affixed to the land, such as [[building]]s. Real estate (immovable property) is often considered synonymous with '''[[real property]]''' (also sometimes called ''realty''), in contrast with [[personal property]] (also sometimes called ''chattel'' or ''personalty''). However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from real property, referring to ownership rights over real estate. The terms ''real estate'' and ''real property'' are used primarily in [[common law]], while [[civil law]] [[jurisdiction]]s refer instead to [[immovable property]]. [[Property law]], the area of the [[common law]] that governs real property, differs from [[contract law]] in that it focuses primarily on rights that one person holds over ''all'' other people, as opposed to specific individuals.
{{pp|small=yes}}
{{for-multi|the legal concept|Real property|other uses|Real Estate (disambiguation)}}
{{globalize|date=March 2023}}
{{Property law}}


'''Real estate''' is property consisting of land and the buildings on it, along with its [[natural resource]]s such as growing crops (e.g. timber), minerals or water, and wild animals; immovable property of this nature; an interest vested in this (also) an item of [[real property]], (more generally) buildings or [[housing]] in general.<ref name="ReferenceA2">"Real estate": Oxford English Dictionary online: Retrieved September 18, 2011</ref><ref>{{cite web |author=James Chen |date=May 2, 2019 |title=What Is Real Estate? |url=https://www.investopedia.com/terms/r/realestate.asp |access-date=May 13, 2019 |website=investopedia.com |archive-date=August 18, 2000 |archive-url=https://web.archive.org/web/20000818111700/https://www.investopedia.com/terms/r/realestate.asp |url-status=live }}</ref> In terms of law, ''real'' relates to land property and is different from [[personal property]], while ''estate'' means the "interest" a person has in that land property.<ref name=":0">{{Cite book |title=Real Estate. |publisher=Funk & Wagnalls New World Encyclopedia, 1 |year=2018}}</ref>
In recent years, many [[economist]]s have recognized that the lack of effective real estate laws can be a significant barrier to investment in many developing countries. In most societies, rich or poor, a significant fraction of the total wealth is in the form of land and buildings. In most advanced economies, the main source of [[capital]] used by individuals and small companies to purchase
and improve land and buildings is [[mortgages]] -- bank loans for which the real property itself constitutes collateral. Banks are willing to make such loans at favorable rates in large part because if the borrower does not make payments the lender can foreclose, that is, file a court action that lets them take the property and sell it to get their money back. However, in many developing countries, there is no effective means by which a lender could [[foreclosure|foreclose]], so the mortgage loan industry as such either does not exist at all or is only available to members of privileged [[social class]]es.


Real estate is different from personal property, which is not permanently attached to the land (or comes with the land), such as vehicles, boats, jewelry, furniture, tools, and the rolling stock of a [[farm]] and farm animals.
In spite of the name, the law does not consider real property more genuine or "real" than personal property. In law, the word ''real'' means relating to a ''thing'' (from Latin ''res'', matter or thing), as distinguished from a person. Thus the law broadly distinguishes between ''real property'' (land and anything affixed to it) and ''personal property'' (everything else, ''e.g.'', clothing, furniture, money). The conceptual difference was between immovable property, which would transfer [[Title (property)|title]] along with the land, and movable property, which a person would retain title to. The term is not derived from the notion of land having historically been "royal" property. The word ''royal'' — and its [[Spanish]] [[cognate]] ''real'' — come from the unrelated Latin word ''rex'', meaning [[king].


In the United States, the transfer, owning, or acquisition of real estate can be through business corporations, individuals, nonprofit corporations, fiduciaries, or any legal entity as seen within the law of each U.S. state.<ref name=":0" />


== History of real estate ==
With the development of private [[property]] [[ownership]], real estate has become a major area of [[business]]. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. The price or value of real estate, although it generally tends to increase over time, is highly volatile and erratic. Cities such as [[Vancouver, British Columbia|Vancouver]], [[British Columbia]] and [[Boise, Idaho|Boise]], [[Idaho]] have experienced remarkable growth in real estate prices in the new millennium, while other cities have experienced large decreases for a period of 10 or 15 years, such as that of [[Cleveland, Ohio|Cleveland]], [[Ohio]] in the [[1980]]s and [[1990]]s. Specialists are often called on to valuate real estate and facilitate transactions. Some kinds of real estate businesses include:
The natural right of a person to own property as a concept can be seen as having roots in Roman law as well as Greek philosophy.<ref>{{Cite journal |last=Alvik |first=Ivar |date=2018 |title=Protection of Private Property in the Early Law of Nations. |journal=Journal of the History of International Law |volume=20 |issue=2 |pages=220|doi=10.1163/15718050-19041026 |s2cid=158672172 }}</ref> The profession of appraisal can be seen as beginning in England during the 1500s, as agricultural needs required land clearing and land preparation. Textbooks on the subject of surveying began to be written and the term "surveying" was used in England, while the term "appraising" was more used in North America.<ref>{{Cite journal |last=Klaasen |first=R. L. |date=1976 |title=Brief History of Real Estate Appraisal and Organizations. |url= |journal=Appraisal Journal |volume=44 |issue=3 |pages=376–381}}</ref> [[Natural law]] which can be seen as "universal law" was discussed among writers of the 15th and 16th century as it pertained to "property theory" and the inter-state relations dealing with foreign investments and the protection of citizens private property abroad. Natural law can be seen as having an influence in [[Emer de Vattel|Emerich de Vattel]]'s 1758 treatise ''[[The Law of Nations]]'' which conceptualized the idea of private property.<ref>{{Cite journal |last=Alvik |first=Ivar |date=2018 |title=Protection of Private Property in the Early Law of Nations. |journal=Journal of the History of International Law |volume=20 |issue=2 |pages=218–227|doi=10.1163/15718050-19041026 |s2cid=158672172 }}</ref>


One of the largest initial real estate deals in history known as the "[[Louisiana Purchase]]" happened in 1803 when the Louisiana Purchase Treaty was signed. This treaty paved the way for western expansion and made the [[United States|U.S.]] the owners of the "[[Louisiana Territory]]" as the land was bought from France for fifteen million dollars, making each acre roughly 4 cents.<ref>{{Cite web |title=Louisiana Purchase: Primary Documents in American History |url=https://guides.loc.gov/louisiana-purchase |website=Library of Congress Research Guides |access-date=2022-05-18 |archive-date=2022-06-25 |archive-url=https://web.archive.org/web/20220625171531/https://guides.loc.gov/louisiana-purchase |url-status=live }}</ref> The oldest real estate brokerage firm was established in 1855 in Chicago, Illinois, and was initially known as "L. D. Olmsted & Co." but is now known as "Baird & Warner".<ref>{{Cite news |last=Richardson |first=Patricia |date=June 2, 2003 |title=Father-son team scores big at home; Nearly 150 years old, family-owned Baird & Warner Inc. is a dominant force in the area's residential real estate industry, and shows no signs of slowing down or selling out |work=Crain's Chicago Business.}}</ref> In 1908, the [[National Association of Realtors]] was founded in Chicago and in 1916, the name was changed to the National Association of Real Estate Boards and this was also when the term "[[Real estate agent|realtor]]" was coined to identify real estate professionals.<ref>{{Cite web |title=History of National Association of Realtors |url=https://www.nar.realtor/about-nar/history |website=National Association of Realtors |date=13 January 2012 |access-date=18 May 2022 |archive-date=13 May 2022 |archive-url=https://web.archive.org/web/20220513054559/https://www.nar.realtor/about-nar/history |url-status=live }}</ref>
*[[Real estate appraisal|Appraisal]] - Professional valuation services
*[[Real estate broker|Brokerages]] - Assisting buyers and sellers in transactions
*[[Real estate developer|Development]] - Improving land for use by adding or replacing buildings
*[[Property management]] - Managing a property for its owner(s)
*[[Real Estate Marketing]] - Managing the sales side of the property business
*[[Relocation services]] - Relocating people or business to different country


The stock market crash of 1929 and the [[Great Depression in the United States|Great Depression]] in the U.S. caused a major drop in real estate worth and prices and ultimately resulted in depreciation of 50% for the four years after 1929.<ref>{{Cite journal |last1=Nicholas |last2=Scherbina |first1=T. |first2=A. |date=2013 |title=Real Estate Prices During the Roaring Twenties and the Great Depression. |journal=Real Estate Economics, 41 |volume=2 |pages=280}}</ref> Housing financing in the U.S. was greatly affected by the Banking Act of 1933 and the National Housing Act in 1934 because it allowed for mortgage insurance for home buyers and this system was implemented by the Federal Deposit Insurance as well as the Federal Housing Administration.<ref>{{Cite journal |last=Greer |first=J. L. |date=2014 |title=Historic Home Mortgage Redlining in Chicago |journal=Journal of the Illinois State Historical Society |volume=107|issue=2 |pages=204–233 |doi=10.5406/jillistathistsoc.107.2.0204}}</ref> In 1938, an amendment was made to the National Housing Act and [[Fannie Mae]], a government agency, was established to serve as a secondary market for mortgages and to give lenders more money in order for new homes to be funded.<ref>{{Cite web|url=https://www.fhfaoig.gov/Content/Files/History%20of%20the%20Government%20Sponsored%20Enterprises.pdf|title=A Brief History of the Housing Government-Sponsored Enterprises |website=Federal Housing Finance Agency – OIG |access-date=2022-05-18|archive-date=2023-03-08|archive-url=https://web.archive.org/web/20230308060643/https://www.fhfaoig.gov/Content/Files/History%20of%20the%20Government%20Sponsored%20Enterprises.pdf|url-status=live}}</ref>
Within each field, a business may specialize in a particular type of real estate, such as residential, [[commercial property|commercial]], or industrial property. In addition, almost all [[construction]] business effectively has a connection to real estate.


Title VIII of the Civil Rights Act in the U.S., which is also known as the Fair Housing Act, was put into place in 1968 and dealt with the incorporation of African Americans into neighborhoods as the issues of discrimination were analyzed with the renting, buying, and financing of homes.<ref>{{Cite journal |last=Taylor |first=K. Y. |date=2018 |title=How Real Estate Segregated America. |journal=Dissent |volume=65 |issue=4 |pages=23–24|doi=10.1353/dss.2018.0071 |s2cid=149616841 }}</ref> [[Internet real estate]] as a concept began with the first appearance of real estate platforms on the World Wide Web (www) and occurred in 1999.
"Internet Real Estate" is a term coined by the internet investment community relating to the parallel that exists between high quality internet domain names and real-world, prime real estate - both are highly valued claims to something, and they can only be asserted or supported by means of agreement upon a certain code, such as a national legal system or the body governing internet domain names.


==Residential real estate==
==Levels==

According to [[The Economist]], "[[developed economy|developed economies]]'" assets at the end of 2002 was
Residential real estate may contain either a single family or multifamily structure that is available for occupation or for non-business purposes.<ref>{{cite web |title=Title 16. Conservation; Chapter 1. National Parks, Military Parks, Monuments, and Seashores; Minute Man National Historical Park |url=http://definitions.uslegal.com/r/residential-property/ |publisher=US Legal |access-date=2015-10-04 |archive-date=2017-07-08 |archive-url=https://web.archive.org/web/20170708092404/https://definitions.uslegal.com/r/residential-property/ |url-status=live }}</ref>
*[[Housing|Residential property]]: $48 [[trillion]]

*[[Commercial property]]: $14 trillion
Residences can be classified by and how they are connected to neighbouring residences and land. Different types of housing tenure can be used for the same physical type. For example, connected residences might be owned by a single entity and leased out, or owned separately with an agreement covering the relationship between units and common areas and concerns.<ref>{{cite web |author=Kimberley Amadeo |date=March 28, 2019 |title=Real Estate, What It Is and How It Works |url=https://www.thebalance.com/real-estate-what-it-is-and-how-it-works-3305882 |access-date=May 13, 2019 |website=thebalance.com |archive-date=May 13, 2019 |archive-url=https://web.archive.org/web/20190513121739/https://www.thebalance.com/real-estate-what-it-is-and-how-it-works-3305882 |url-status=live }}</ref>
*[[Equities]]: $20 trillion

*[[Government bonds]]: $20 trillion
According to the Congressional Research Service, in 2021, 65% of homes in the [[United States|U.S.]] are owned by the occupier.<ref>{{cite web |date= |title=Introduction to U.S. Economy: Housing Market |url=https://sgp.fas.org/crs/misc/IF11327.pdf |archive-url=https://web.archive.org/web/20220729211324/https://sgp.fas.org/crs/misc/IF11327.pdf |archive-date=2022-07-29 |website=Congressional Research Service |access-date=2022-05-18 |url-status=bot: unknown }}</ref>
*[[Bonds|Corporate bonds]]: $13 trillion

*Total: $115 trillion
[[File:Gingerbread House Essex CT.jpg|thumb|Single-family detached house in [[Essex, Connecticut]], United States]]
That makes real estate assets 55% and financial assets 45% of total stocks, bonds, and real estate assets. Assets not counted here are [[Deposit account|bank deposits]], [[insurance]] "reserve" assets, and [[human assets]]; also it is not clear if all [[debt]] and [[Ownership equity|equity]] investments are counted in the categories equities and bonds. For US asset levels see [http://www.federalreserve.gov/releases/Z1/ FRB: Z.1 Release-- Flow of Funds Accounts of the United States].
[[File:Townhouses in Victoria Australia.jpg|thumb|Townhouses in [[Victoria, Australia]]]]
;Major categories
* Attached / multi-unit dwellings
** [[Apartment]] (American English) or [[Apartment|Flat]] (British English) – An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story [[apartment building]]s.
** [[Multi-family residential|Multi-family house]] – Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.
** [[Terraced house]] (a.k.a. ''townhouse'' or ''rowhouse'') – A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space.
** [[Condominium]] (American English) – A building or complex, similar to apartments, owned by individuals. Common grounds and common areas within the complex are owned and shared jointly. In North America, there are ''townhouse'' or ''rowhouse'' style condominiums as well. The British equivalent is a block of flats.
** [[Housing cooperative]] (a.k.a. co-op) – A type of multiple ownership in which the residents of a multi-unit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit. Majority of housing in Indian metro cities are of these types.
** [[Tenement]] – A type of building shared by multiple dwellings, typically with flats or apartments on each floor and with shared entrance stairway access found in Britain.
* [[Semi-detached]] dwellings
** [[Duplex (building)|Duplex]] – Two units with one shared wall.
* Detached dwellings
** [[Bungalow]]s
** [[Split-level home]]
** [[Mansion]]s
** [[Villa]]s
** [[Detached house]] or [[single-family detached house]]
** [[Cottage]]s
* Portable dwellings
** [[Mobile home]]s, [[tiny homes]], or [[residential caravan]]s – A full-time residence that can be (although might not in practice be) movable on wheels.
** [[Houseboat]]s – A floating home
** [[Tent]]s – Usually temporary, with roof and walls consisting only of fabric-like material.

Other categories
* [[Chawl]]s
* [[Haveli]]s
* [[Igloos]]
* [[Hut]]s

The size of havelis and chawls is measured in Gaz (square yards), Quila, Marla, Beegha, and acre.

See [[List of house types]] for a complete listing of housing types and layouts, [[real estate trends]] for shifts in the market, and [[house]] or [[home]] for more general information.

== Real estate and the environment ==
Real estate can be valued or devalued based on the amount of [[environmental degradation]] that has occurred. Environmental degradation can cause extreme health and safety risks. There is a growing demand for the use of [[Phase I environmental site assessment|site assessments (ESAs)]] when valuing a property for both private and commercial real estate.<ref>{{Cite journal |last1=Cutting |last2=Calhoun |last3=Hall |first1=Robert H. |first2=Lawrence B. |first3=Jack C. |date=2012 |title='Location, Location, Location' Should Be 'Environment, Environment, Environment': A Market-Based Tool to Simplify Environmental Considerations in Residential Real Estate |journal=Golden Gate University Environmental Law Journal}}</ref>

[[Environmental surveying]] is made possible by environmental surveyors who examine the environmental factors present within the development of real estate as well as the impacts that development and real estate has on the environment.

[[Green development]] is a concept that has grown since the 1970s with the environmental movement and the [[Brundtland Commission|World Commission on Environment and Development.]] Green development examines social and [[environmental impact]]s with real estate and building. There are 3 areas of focus, being the environmental responsiveness, [[resource efficiency]], and the sensitivity of cultural and societal aspects. Examples of Green development are [[green infrastructure]], [[LEED]], [[conservation development]], and sustainability developments.

Real estate in itself has been measured as a contributing factor to the rise in green house gases. According to the International Energy Agency, real estate in 2019 was responsible for 39 percent of total emissions worldwide and 11 percent of those emissions were due to the manufacturing of materials used in buildings.<ref>{{Cite journal |date=2019 |title=Global status report for buildings and construction |journal=International Energy Agency}}</ref>

==Investment and development==
{{Main|Real estate investing|Real estate development}}
<gallery>
File:House image 2024 b.jpg|Property for sale in Victoria, Australia: sign. (left)
File:Edithvale home b.jpg|The property in Victoria after it was sold as stated on sign
</gallery>
[[Real estate investing|Investment in real estate]] can be categorized by [[financial risk]] into core, [[Value investing|value-added]], and [[Growth investing|opportunistic]].<ref>[https://ssrn.com/abstract=3628828 Garay, Urbi, Investment Styles, Portfolio Allocation, and Real Estate Derivatives (2016). Garay, U. “Investment Styles, Portfolio Allocation, and Real Estate Derivatives.” In Kazemi, H.; Black, K.; and D. Chambers (Editors), Alternative Investments: CAIA Level II, Chapter 16, Wiley Finance, 3rd Edition, 2016, pp. 401–421.]</ref>
[[Real estate development]] can be less cyclical than real estate investing.<ref>[https://doi.org/10.1111/1540-6229.12258 Geltner, David, Anil Kumar, and Alex M. Van de Minne. "Riskiness of real estate development: A perspective from urban economics and option value theory." Real Estate Economics 48.2 (2020): 406–445.]</ref>
In markets where land and building prices are rising, real estate is often purchased as an investment, whether or not the owner intends to use the property. Often investment properties are rented out, but "[[flipping]]" involves quickly reselling a property, sometimes taking advantage of [[arbitrage]] or quickly rising value, and sometimes after repairs are made that substantially raise the value of the property. Luxury real estate is sometimes used as a way to store value, especially by wealthy foreigners, without any particular attempt to rent it out. Some [[Luxury goods|luxury]] units in London and New York City have been used as a way for corrupt foreign government officials and businesspeople from countries without strong [[rule of law]] to [[launder money]] or to protect it from seizure.<ref>{{cite web |url=https://www.theatlantic.com/ideas/archive/2020/01/american-housing-has-gone-insane/605005/ |title=Why Manhattan's Skyscrapers Are Empty |date=16 Jan 2020 |magazine=The Atlantic |access-date=13 April 2021 |archive-date=13 April 2021 |archive-url=https://web.archive.org/web/20210413073300/https://www.theatlantic.com/ideas/archive/2020/01/american-housing-has-gone-insane/605005/ |url-status=live }}</ref>

==Professionals==
* [[Real estate agent]] – North America
* [[Estate agent]] – United Kingdom


==See also==
==See also==
{{div col|colwidth=18em}}
*[[United States housing bubble|Housing bubble]]
* [[Environmental Surveying]]
*[[List of real estate topics]]
*[[Real estate pricing]]
* [[Green Development]]
* [[Phase I environmental site assessment]]
*[[National Association of Realtors]]
*[[Real estate appraisal]]
* [[Commercial real estate]]
*[[Real estate economics]]
* [[Estate (land)]]
* [[Extraterrestrial real estate]]
*[[Real property]]
* [[Fractional financing]]
* [[Land lot]]
* [[Real estate business]]
* [[Real estate economics]]
* [[Right to property]]
{{div col end}}

==References==
{{Reflist}}


==External links==
==External links==
<!-- Wikipedia is not the place to advertise your business. Commercial links will be quickly removed -->
<!-- Wikipedia is not the place to advertise your business. Commercial links will be quickly removed -->
*{{Wiktionary inline}}
For residential real estate websites, see:
*{{Wikiquote-inline}}
* {{yahoo directory|Business_and_Economy/Shopping_and_Services/Real_Estate/|Real Estate}}
*[http://realestate.msn.com/ MSN Real Estate]
*[http://www.sellitquick.net Real Estate Resource]
*[http://www.mlsaccess.org/ Consumer MLS Access Information]
*[http://www.realestatewords.com/ Free Online Real Estate Dictionary]
*[http://www.realestateapprentice.org/ Non Profit Foundation Awarding Free Grants to become a ReaL Estate Agent]
* {{dmoz|Business/Real_Estate/|Real Estate}}


[[Category:Real estate|*]]
{{Real estate}}
{{Property navbox}}
{{Authority control}}
{{DEFAULTSORT:Real Estate}}


[[Category:Real estate| ]]
[[de:Immobilie]]
[[fr:Immobilier]]
[[id:Real estate]]
[[it:Real estate]]
[[lt:Nekilnojamas Turtas]]
[[nl:Onroerende zaak]]
[[ja:不動産]]
[[pl:Nieruchomość]]
[[pt:Setor imobiliário]]
[[ru:Недвижимость]]
[[fi:Kiinteistö]]
[[th:อสังหาริมทรัพย์]]
[[zh:不動產]]

Latest revision as of 07:59, 21 December 2024

For the legal concept, see Real property. For other uses, see Real Estate (disambiguation).
Property law
Part of the common law series
Types
Acquisition
Estates in land
Conveyancing
Future use control
Nonpossessory interest
Related topics
Other common law areas
Higher category: Law and Common law

Real estate is property consisting of land and the buildings on it, along with its natural resources such as growing crops (e.g. timber), minerals or water, and wild animals; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general.[1][2] In terms of law, real relates to land property and is different from personal property, while estate means the "interest" a person has in that land property.[3]

Real estate is different from personal property, which is not permanently attached to the land (or comes with the land), such as vehicles, boats, jewelry, furniture, tools, and the rolling stock of a farm and farm animals.

In the United States, the transfer, owning, or acquisition of real estate can be through business corporations, individuals, nonprofit corporations, fiduciaries, or any legal entity as seen within the law of each U.S. state.[3]

History of real estate

The natural right of a person to own property as a concept can be seen as having roots in Roman law as well as Greek philosophy.[4] The profession of appraisal can be seen as beginning in England during the 1500s, as agricultural needs required land clearing and land preparation. Textbooks on the subject of surveying began to be written and the term "surveying" was used in England, while the term "appraising" was more used in North America.[5] Natural law which can be seen as "universal law" was discussed among writers of the 15th and 16th century as it pertained to "property theory" and the inter-state relations dealing with foreign investments and the protection of citizens private property abroad. Natural law can be seen as having an influence in Emerich de Vattel's 1758 treatise The Law of Nations which conceptualized the idea of private property.[6]

One of the largest initial real estate deals in history known as the "Louisiana Purchase" happened in 1803 when the Louisiana Purchase Treaty was signed. This treaty paved the way for western expansion and made the U.S. the owners of the "Louisiana Territory" as the land was bought from France for fifteen million dollars, making each acre roughly 4 cents.[7] The oldest real estate brokerage firm was established in 1855 in Chicago, Illinois, and was initially known as "L. D. Olmsted & Co." but is now known as "Baird & Warner".[8] In 1908, the National Association of Realtors was founded in Chicago and in 1916, the name was changed to the National Association of Real Estate Boards and this was also when the term "realtor" was coined to identify real estate professionals.[9]

The stock market crash of 1929 and the Great Depression in the U.S. caused a major drop in real estate worth and prices and ultimately resulted in depreciation of 50% for the four years after 1929.[10] Housing financing in the U.S. was greatly affected by the Banking Act of 1933 and the National Housing Act in 1934 because it allowed for mortgage insurance for home buyers and this system was implemented by the Federal Deposit Insurance as well as the Federal Housing Administration.[11] In 1938, an amendment was made to the National Housing Act and Fannie Mae, a government agency, was established to serve as a secondary market for mortgages and to give lenders more money in order for new homes to be funded.[12]

Title VIII of the Civil Rights Act in the U.S., which is also known as the Fair Housing Act, was put into place in 1968 and dealt with the incorporation of African Americans into neighborhoods as the issues of discrimination were analyzed with the renting, buying, and financing of homes.[13] Internet real estate as a concept began with the first appearance of real estate platforms on the World Wide Web (www) and occurred in 1999.

Residential real estate

Residential real estate may contain either a single family or multifamily structure that is available for occupation or for non-business purposes.[14]

Residences can be classified by and how they are connected to neighbouring residences and land. Different types of housing tenure can be used for the same physical type. For example, connected residences might be owned by a single entity and leased out, or owned separately with an agreement covering the relationship between units and common areas and concerns.[15]

According to the Congressional Research Service, in 2021, 65% of homes in the U.S. are owned by the occupier.[16]

Single-family detached house in Essex, Connecticut, United States
Townhouses in Victoria, Australia
Major categories
  • Attached / multi-unit dwellings
    • Apartment (American English) or Flat (British English) – An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.
    • Multi-family house – Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.
    • Terraced house (a.k.a. townhouse or rowhouse) – A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space.
    • Condominium (American English) – A building or complex, similar to apartments, owned by individuals. Common grounds and common areas within the complex are owned and shared jointly. In North America, there are townhouse or rowhouse style condominiums as well. The British equivalent is a block of flats.
    • Housing cooperative (a.k.a. co-op) – A type of multiple ownership in which the residents of a multi-unit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit. Majority of housing in Indian metro cities are of these types.
    • Tenement – A type of building shared by multiple dwellings, typically with flats or apartments on each floor and with shared entrance stairway access found in Britain.
  • Semi-detached dwellings
    • Duplex – Two units with one shared wall.
  • Detached dwellings
  • Portable dwellings

Other categories

The size of havelis and chawls is measured in Gaz (square yards), Quila, Marla, Beegha, and acre.

See List of house types for a complete listing of housing types and layouts, real estate trends for shifts in the market, and house or home for more general information.

Real estate and the environment

Real estate can be valued or devalued based on the amount of environmental degradation that has occurred. Environmental degradation can cause extreme health and safety risks. There is a growing demand for the use of site assessments (ESAs) when valuing a property for both private and commercial real estate.[17]

Environmental surveying is made possible by environmental surveyors who examine the environmental factors present within the development of real estate as well as the impacts that development and real estate has on the environment.

Green development is a concept that has grown since the 1970s with the environmental movement and the World Commission on Environment and Development. Green development examines social and environmental impacts with real estate and building. There are 3 areas of focus, being the environmental responsiveness, resource efficiency, and the sensitivity of cultural and societal aspects. Examples of Green development are green infrastructure, LEED, conservation development, and sustainability developments.

Real estate in itself has been measured as a contributing factor to the rise in green house gases. According to the International Energy Agency, real estate in 2019 was responsible for 39 percent of total emissions worldwide and 11 percent of those emissions were due to the manufacturing of materials used in buildings.[18]

Investment and development

Main articles: Real estate investing and Real estate development
  • Property for sale in Victoria, Australia: sign. (left)
    Property for sale in Victoria, Australia: sign. (left)
  • The property in Victoria after it was sold as stated on sign
    The property in Victoria after it was sold as stated on sign

Investment in real estate can be categorized by financial risk into core, value-added, and opportunistic.[19] Real estate development can be less cyclical than real estate investing.[20] In markets where land and building prices are rising, real estate is often purchased as an investment, whether or not the owner intends to use the property. Often investment properties are rented out, but "flipping" involves quickly reselling a property, sometimes taking advantage of arbitrage or quickly rising value, and sometimes after repairs are made that substantially raise the value of the property. Luxury real estate is sometimes used as a way to store value, especially by wealthy foreigners, without any particular attempt to rent it out. Some luxury units in London and New York City have been used as a way for corrupt foreign government officials and businesspeople from countries without strong rule of law to launder money or to protect it from seizure.[21]

Professionals

See also

References

  1. ^ "Real estate": Oxford English Dictionary online: Retrieved September 18, 2011
  2. ^ James Chen (May 2, 2019). "What Is Real Estate?". investopedia.com. Archived from the original on August 18, 2000. Retrieved May 13, 2019.
  3. ^ a b Real Estate. Funk & Wagnalls New World Encyclopedia, 1. 2018.
  4. ^ Alvik, Ivar (2018). "Protection of Private Property in the Early Law of Nations". Journal of the History of International Law. 20 (2): 220. doi:10.1163/15718050-19041026. S2CID 158672172.
  5. ^ Klaasen, R. L. (1976). "Brief History of Real Estate Appraisal and Organizations". Appraisal Journal. 44 (3): 376–381.
  6. ^ Alvik, Ivar (2018). "Protection of Private Property in the Early Law of Nations". Journal of the History of International Law. 20 (2): 218–227. doi:10.1163/15718050-19041026. S2CID 158672172.
  7. ^ "Louisiana Purchase: Primary Documents in American History". Library of Congress Research Guides. Archived from the original on 2022-06-25. Retrieved 2022-05-18.
  8. ^ Richardson, Patricia (June 2, 2003). "Father-son team scores big at home; Nearly 150 years old, family-owned Baird & Warner Inc. is a dominant force in the area's residential real estate industry, and shows no signs of slowing down or selling out". Crain's Chicago Business.
  9. ^ "History of National Association of Realtors". National Association of Realtors. 13 January 2012. Archived from the original on 13 May 2022. Retrieved 18 May 2022.
  10. ^ Nicholas, T.; Scherbina, A. (2013). "Real Estate Prices During the Roaring Twenties and the Great Depression". Real Estate Economics, 41. 2: 280.
  11. ^ Greer, J. L. (2014). "Historic Home Mortgage Redlining in Chicago". Journal of the Illinois State Historical Society. 107 (2): 204–233. doi:10.5406/jillistathistsoc.107.2.0204.
  12. ^ "A Brief History of the Housing Government-Sponsored Enterprises" (PDF). Federal Housing Finance Agency – OIG. Archived (PDF) from the original on 2023-03-08. Retrieved 2022-05-18.
  13. ^ Taylor, K. Y. (2018). "How Real Estate Segregated America". Dissent. 65 (4): 23–24. doi:10.1353/dss.2018.0071. S2CID 149616841.
  14. ^ "Title 16. Conservation; Chapter 1. National Parks, Military Parks, Monuments, and Seashores; Minute Man National Historical Park". US Legal. Archived from the original on 2017-07-08. Retrieved 2015-10-04.
  15. ^ Kimberley Amadeo (March 28, 2019). "Real Estate, What It Is and How It Works". thebalance.com. Archived from the original on May 13, 2019. Retrieved May 13, 2019.
  16. ^ "Introduction to U.S. Economy: Housing Market" (PDF). Congressional Research Service. Archived from the original on 2022-07-29. Retrieved 2022-05-18.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  17. ^ Cutting, Robert H.; Calhoun, Lawrence B.; Hall, Jack C. (2012). "'Location, Location, Location' Should Be 'Environment, Environment, Environment': A Market-Based Tool to Simplify Environmental Considerations in Residential Real Estate". Golden Gate University Environmental Law Journal.
  18. ^ "Global status report for buildings and construction". International Energy Agency. 2019.
  19. ^ Garay, Urbi, Investment Styles, Portfolio Allocation, and Real Estate Derivatives (2016). Garay, U. “Investment Styles, Portfolio Allocation, and Real Estate Derivatives.” In Kazemi, H.; Black, K.; and D. Chambers (Editors), Alternative Investments: CAIA Level II, Chapter 16, Wiley Finance, 3rd Edition, 2016, pp. 401–421.
  20. ^ Geltner, David, Anil Kumar, and Alex M. Van de Minne. "Riskiness of real estate development: A perspective from urban economics and option value theory." Real Estate Economics 48.2 (2020): 406–445.
  21. ^ "Why Manhattan's Skyscrapers Are Empty". The Atlantic. 16 Jan 2020. Archived from the original on 13 April 2021. Retrieved 13 April 2021.
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