The 4 Types of Real Estate

Real estate is one of the oldest, most reliable, and diverse ways of investing. However, there are numerous ways to invest, making it hard for investors to make the right choice. Before investing in real estate, it is crucial to research and seek professional advice. Here are the four types of real estate:

Residential real estate is very lucrative, thus attracting numerous investors. If you know where to start or how to do it, you can get a high return on investment (ROI) in the long run. Over the past decade, residential real estate has grown by more than 50% because there are numerous ways to invest. Here are some of the ways one can invest:

  • Condominiums
  • Single-family houses
  • Townhouses
  • Duplex
  • Triplex
  • Fourplex
  • Mobile homes
  • Cooperatives

To find residential real estate, you can use the following sources; Craigslist,, Zillow, Local MLS, Trulia, local real estate agent, or Redfin.

Commercial real estate refers to property that’s used for business purposes. Commercial real estate is approximately between $14 and $17 trillion in the US. Examples of commercial real estate include:

  • Office spaces, e.g., medical centers and urban office towers
  • Retail spaces, e.g., fast food outlets
  • Mobile home parks
  • Parking lots and garages
  • Grocery stores & gas stations
  • Apartment buildings
  • Movie theatres
  • Storage & mini-storage facilities

Typically, industrial real estate is treated similarly to commercial real estate. However, the two differ due to how industrial real estate is used. Examples of industrial real estate include:

  • Manufacturing
  • Research & development parks
  • Production facilities & food processing centers
  • Storage warehouses & distribution facilities/centers
  • Power plans & solar generating centers/stations
  • Freezer & refrigeration stations


The land is bought for future development or valuable natural resources like minerals and oils. Most investors prefer investing in raw land because it has minimal taxes and maintenance costs. Land real estate investments include:

  • Orchards
  • Timberland
  • Recreation parcels of land for hunting or fishing
  • Farms & ranches
  • Lots in a subdivision
  • Planned urban development that can be used for residential or commercial purposes

It is vital to know and understand the right type of real estate for you, depending on your preference, knowledge, and budget.