The real estate industry is a business that consists of buying, selling, and managing properties. The main segments of the real estate industry are commercial, residential, and industrial.
Commercial property includes shopping centers, office buildings, and warehouses. Residential property includes homes, condominiums, and other types of housing.
Industrial property is generally used for manufacturing or the production of goods. Generally, the industry’s profitability depends on the supply of investment capital, property values, and demand.
Property development is the process of developing or re-leasing existing properties. The process entails purchasing raw land and building or renovating buildings.
New home construction is another critical segment of the real estate industry. During this stage, new buildings such as townhouses, single family homes, and condominiums are constructed.
New homes are not only a sign of the health of the housing industry, but also a leading economic indicator. The National Association of Home Builders (NAHB) reports that a new house is being built every nine weeks.
The value of real estate will depend on several factors, including employment rates, crime, and other aspects of the national economy. In addition, the amount of time it takes to sell a property will influence its price.
Real estate agents are experts in the industry and they assist buyers and sellers of all kinds of property. They are also responsible for completing the necessary legal paperwork.
The industry is highly fragmented. Many real estate agencies are local operations. Some of them, however, are nationwide firms.