Overview of Real estate Asset class

 Real Estate:- Real estate is a class of "real property" that includes land and
anything permanently attached to it, whether natural or man-made.
• As a business term, real estate also refers to producing, buying, and
selling property.
•  It affects the economy because it's a critical driver of economic growth.
• It can be purchased or sold. It might be owned by a government, a
corporate entity or by a private party. But certain components can have a
direct impact on the economy: consistent improvement of land, and the
individual and entities that facilitate those transfers of ownership.

 The four main real estate asset class are:-

• Residential
• Commercial
• Industrial
• Infrastructure
 Residential Real assets

1. Residential real estate is an area developed for people to live on.

• Residential property is simply real estate for living. It includes single-
family homes, townhouses, condos, and vacation houses.
• Residential real estate is often the most important financial investment a
person owns, and the value of real property on the estate is subject to
shifts in the real estate market.
• Some people purchase real estate in the hope of making money, either
by selling it at a profit or leasing it to others and charging them rent. But
most people simply live on their property.
•  Factors affecting the value of a residential real estate are: –
 Quality and condition of the building
 Amenities
 Proximity to shopping complex, school, transportation connects
 Commercial Real Estate
• Commercial Real Estate includes any property that generates income.
• Commercial real estate is attractive due to its potential to produce
returns for investors uncorrelated from public markets while
providing the security of a physical asset.
• Any property used exclusively for business purposes, such as
apartment complexes, gas stations, grocery stores, hospitals, hotels,
offices, parking facilities, restaurants, shopping centers, stores, and
theaters.
Factors affecting the value of a commercial real estate are:
• – Foot traffic in front of the location
• – Proximity to major transportation network
• – Styling and condition of the building
• – Parking availability
3. Industrial Real Estate-Industrial Real estate can be broadly
defined as all land and buildings which accommodate
industrial activities including production , manufacturing
,assembly ,warehousing , research , storage and distribution.

4. Infrastructure Real Estate- These are designed for the

benefit of general public . These are important projects that
help cities ,countries and state operate efficiently . It consists
of large assets such as utilities, toll roads, shipping ports,
airports, etc . They are generally funded by tax payers
through general obligations ,tax revenues generated by the
property or both.