2023-07-21 22:26:43
Do you know what real estate is? This term covers the real estate market and offers opportunities to profit through investments in this area.
With the term becoming more and more popular, we have prepared a guide on its characteristics and segments.
What is real estate?
The term real estate is an expression in English that refers to the real estate sector or real estate market. Its translation is “real property”, that is, something physical and tangible.
Therefore, it covers a wide range of activities related to the purchase, sale, rent, management, development and investment in physical properties, such as land, houses, shopping malls, among others.
In the United States, the term is used to refer to Real Estate Investment Trusts, that is, real estate investment funds (FIIs).
Real estate is a major aspect of the financial market, in addition to being an important indicator of a country’s economy. In fact, the sector generates millions of direct or indirect jobs.
How it works?
Real estate functions as a market in which physical properties are bought, sold, rented and managed. Thus, it involves a series of processes and agents that play specific roles in the dynamics of this market.
The basic transaction in the real estate market is the buying and selling of properties. Therefore, the negotiations involve the definition of prices, terms and conditions of the sale, in addition to carrying out inspections and verification of legal documents.
In addition, the owners of these properties can choose to rent their properties. Most often, this process takes place with the help of real estate agents.
On the other hand, we have the developers, that is, companies that invest in the construction and sale/rent of properties.
Another important point in this market is financing, where banks and financial institutions provide the resources for these loans.
In addition, there are investors (individuals or companies) who put their money in real estate funds or in projects outside the stock market. The objective is to obtain a financial return through the appreciation of the property over time.
What are the real estate segments?
The real estate market is diverse and contains several segments, as it is an essential pillar of a country’s economy. Thus, the main segments include:
Residential
This segment includes properties that serve as a residence, such as houses, apartments and condominiums. Buyers can acquire residences for their own use or for investment, with a view to renting or reselling the property.
Commercial
The commercial real estate sector covers real estate used for commercial and business purposes. This includes offices, commercial buildings, malls, restaurants, among others. In this case, rent is more common.
Industrial
Industrial properties include warehouses, manufacturing facilities, industrial parks and distribution centers. These properties are designed to meet the logistical and operational needs of companies and industries.
Retail
The retail market encompasses properties intended for retail establishments, such as stores, boutiques, supermarkets, malls and outlets.
Hospitality
This segment includes properties intended for the hotel industry, such as hotels, resorts, inns and short-stay accommodation.
Real Estate Investment Funds
Despite not being a specific segment, FIIs are a means of real estate investment that covers several segments. In this way, professionals or companies invest in the construction, purchase or improvement of a property to later profit from another operation.
real estate in Brazil
The real estate market in Brazil is a significant part of the country’s economy. Since it is one of the most important and diversified sectors.
In addition, it plays an essential role in generating jobs, economic growth and providing housing and infrastructure for the population.
Regarding the numbers, a survey carried out by the Brazilian Association of Real Estate Developers (A branch) shows that new property sales grew by 9.2% in 2022. In the period, 156,730 units were sold.
It is important to note that real estate market conditions can vary widely from region to region in Brazil, as the country is vast and diverse in terms of culture, economy and geography.
Therefore, it is essential that those interested in the Brazilian real estate market consider regional specificities when making investment or property acquisition decisions.
What does a real estate professional do?
A real estate professional is a person who works in the real estate industry, helping buyers, sellers, investors and renters navigate the physical property market.
Thus, there are several types of professionals who work in the real estate market, performing specific functions according to their specialties. Check out some of the top professionals:
Realtor: also known as real estate agent, is responsible for intermediating the purchase, sale and rental of properties. They represent the interests of buyers and sellers, helping them find the property that meets their needs and budget.
Real Estate Consultant: Provides expert advice on issues related to the real estate sector, such as development planning, real estate investments, marketing strategies and property management.
Real Estate Financier: works in financial institutions or real estate credit companies, granting loans and financing for the acquisition of real estate.
Civil engineer or architect: professionals who can work in the technical evaluation of properties, helping to identify structural issues and providing information on construction and renovation projects.
Real Estate Investment Specialists: Focuses on identifying real estate investment opportunities and analyzing the financial performance of properties to maximize return on investment.
Conclusion
Real estate plays a crucial role in society, providing housing, commercial space and infrastructure to meet the needs of the population. Furthermore, it is a diverse and dynamic sector, encompassing a wide range of activities.
As such, it is one of the pillars of the economy, generating direct and indirect jobs in various sectors, boosting economic growth.
As the world moves into an uncertain future, the real estate market will continue to evolve and adapt. After all, population growth, urbanization, technology, sustainability and changing consumer preferences will shape tomorrow’s real estate landscape.
In this sense, the sector will continue to be a promising field for investment, innovation and progress, playing a fundamental role in people’s lives and in the global economy.
Common questions
1) What is real estate?
Real estate is an English term that refers to the real estate sector, covering the purchase, sale, rent, development and investment in physical properties.
2) What are Real Estate Investment Trusts?
These are investment companies that own and manage a diversified portfolio of real estate properties. As such, they offer investors the opportunity to acquire shares in these companies and earn financial returns through renting, property appreciation and other real estate activities.
3) What are the real estate segments?
Real estate segments include residential, commercial, industrial, office, retail, hospitality, healthcare, land and development, and rural.
4) How do real estate financing work?
Real estate financing are loans granted by financial institutions to assist in the acquisition of properties. So the buyer pays a down payment and gets a loan to cover the remainder of the property’s value.
5) What professions exist in real estate?
Some professions in real estate include realtors, civil engineers, real estate consultants and real estate lenders.
6) What are the advantages of investing in real estate?
Investing in Real Estate can offer benefits such as portfolio diversification, potential for equity appreciation, income generation through rent and protection against inflation. In addition, physical properties are tangible assets, which can provide greater security for investors.
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