Real estate comprises all real property that changes in value as a result of economic activity. 房地產 includes the structures, contents, and improvements of real estates. Real estate includes such elements as dwellings, offices, retail stores, industrial production, or manufacturing, agricultural lands, mining claims, forestry lands, and surplus farmlands. The term ‘real estate’ does not include the intangible assets held by a person such as accounts receivable or accounts payable. Real estate includes any property used in the business of buying and selling houses, constructing buildings, installing heating equipment, providing education, making insurance claims, collecting rents, managing rental income, selling possessions, real estate investment, and financing residential real estate activities. Real estate also includes common equity or retained earnings and any partnership interest.
The major segment within the real estate industry is retail properties. These include such properties as shopping centers, malls, open-air shops, food courts, hotels, motels, apartments, and condos. The commercial property business includes office buildings, warehouses, shopping centers, warehouses, development sites, apartment buildings, manufacturing plants, manufacturing facilities, restaurants, and offices. The single-family homes are usually residential properties such as farms, row houses, and mobile homes. The term ‘resale value’ is used to describe the increase in the resale value of a real property due to resale or inheritance.
A brief description of the major types of real estate includes the land-locked community, wetland areas, flood-prone areas, soil elevation, and subsidence risks, main types of structures and other economic characteristics. Majority of the land-locked communities are located in the northern part of United States in states such as New York, New Jersey, and Connecticut. Majority of the wetland areas are located in the south of United States in states like Texas, Arkansas, and Florida. Soweto, Johannesburg, Durban, Cape Town, and Bloemfontein in South Africa are examples of major barriers to the free movement of people due to the presence of man-made and natural obstructions in the water ways and sewer systems.
The main reason for the development of the real estate market is the increasing population in most of the countries. The Real Estate industry is one of the major contributors to the economic growth and job creation. Many property management companies are providing their services to the various real estate developers and builders across the United States. Apart from this there are many other real estate consultants and agents who help the buyers and sellers in buying and selling the property.
Other factors that determine the demand for real estate in any locality are the availability of land for building constructions, the rate of interest on the loans and other factors such as land ownership, accessibility of local roads, train stations, and other public utilities, local economy and so on. As the real estate industry includes a wide variety of assets and liabilities, it is essential to be very clear about the exact worth of the real property before buying it. The market research provided by most of the real estate consultants and agents will help in knowing the exact value of the property. This information can be used by the buyer and seller to decide about the price of the property.
There are many ways in which the real estate market helps and assists the community and economy in South Africa. This is evident in the fact that the real estate industry creates employment opportunities for thousands of people. Apart from this, the increase in the population has resulted in the demand of property on the increase and this is a very important factor for investors and buyers. The example includes the increase in housing starts, the building of hospitals and schools, the establishment of waste management, and many other such things.