Real estate Market refers to a piece of land or property and all the elements related to the land business. These elements might be natural such as; water, trees, minerals and agricultural products or man-made such as; buildings, hospitals, offices and shops. Real estate is a kind of an asset which is different from other economic assets in some ways. For instance, real estate is immobile and can’t be transferred from one place to another. It can never be permanently destroyed or eliminated. No matter how much similarities two pieces of land share with each other they will always be geographically apart. Factors, such as construction quality, sewerage system, roads, electricity as well as locality impact the economic value of a real estate land.

All properties available for sale in a given area constitute the real estate market. There are some major factors that run the real estate market and guide its prices. Some of those factors are mentioned below:

1- Demography:

Demography describes the constitution of population including race, gender, age etc. It plays a major role in determining the area in demand and how it is priced. Hence, demographic shift might bring change in real estate trends.

2- Interest Rates:

Interest rates greatly influence the real estate market. The lower the interest rates, the lower the prices and the higher interest rates, the higher prices.

3- Economic Health:

The overall economic health also heavily influences the real estate market. Economic health can be measured by GDP, industrial growth, employment ratio etc. Economy is directly proportional to the real estate business.

4- Government Policies:

Legislations also play a fundamental role in determining the trends in the real estate market. Taxes and subsidies imposed through various legislations increase or decrease the prices.

If you are new in real estate business and thinking of investing in it, then it is important for you to be able to classify between its different types. This ability will help you to take a decision

about the type of the real estate for investment. There are 5 types of real estates which are mentioned below:

1- Residential Real Estate:

Any sort of land used for residential purposes is included in residential real estate. This is the most common type of real estate to which common people are familiar with. For example; houses, apartments, townhouses etc.

2- Commercial Real Estate:

A piece of land used for business or commercial purposes is counted in commercial real estate. It is the second most common type of real estate. They are usually owned to generate income. These include shopping malls, hospital buildings, offices, gas stations etc.

3- Industrial Real Estate:

A property used for manufacturing, production, research, distribution, logistics, development and storage is called industrial real estate. Warehouses, factories and power plants fall in this category.

4- Vacant Land:

A raw land which does not have any developed commercial or industrial property is called vacant land. This kind of land mostly contains minerals and natural resources such as water, fields and air. These include farms, orchards, mines and agricultural fields.

5- Special Purpose:

The properties in use of the common public for some specific purposes are special lands. This comprises libraries, parks, government schools, mosques and churches.

A question arises here as to why should one invest in real estate? Its answer is that most of the billionaires made their billions by investing in real estate more than any other business. There are a number of ways to invest in real estate. For you, it is important to find a way which suits your budget and time. The two major ways of investment are direct and indirect investment. Both of these ways are briefly explained below:

1- Direct Investment in Real Estate Market:

You can invest in real estate by directly owning the houses and other rental properties. Regular rent from the rental properties as well as regular increment in real estate’s value might earn you a huge profit.

2- Indirect Investment:

Another way to invest in real estate is by indirectly investing in a Real Estate Investment Trust (REIT). REITs are the companies where the investors can invest their money to become shareholders of the properties in order to generate income.

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