An Overview of Residential Real Estate and its Types3 min read
This post will provide you with a complete overview of residential real estate along with its different subcategories, its developments and scope in the coming time. If we discuss about the present scenario of real estate developments in India, residential sector has contributed to a major extent in the overall development of real estate sector. Commercial real estate has also been its major part due to emerging trends of startups and government’s efforts to attract more and more FDIs entering into the market. Besides everything, residential sector has always proven to be a savior due to its constant increasing demand within the country for more housing needs.
Understanding the term: Real Estate
The term “real” originated from a Latin word “Realis” which means existing or true while the other term estate is referred to status which means existing or true. Hence, combining both the terms in its real context, it refers to a land along with its improvements which are attached to it, whether natural (trees and water sources) or man-made (buildings, fences and bridges). So it basically refers to all the developments made on a piece of land to meet any specific purpose; whether commercial, residential or industrial.
Getting Deeper into Residential Real Estate
Now, as per the above mentioned definition, a piece of land which is used to develop all modern facilities including buildings, water and electricity supply, sewage systems and transportation with a motive to allow dwelling for people is considered as residential real estate. As we all know, land is available with its own limitations which have to be improvised as per current needs and requirements, hence its price and value also depends on several economic factors like improvements made on it, durability of those improvements and of course its location. Residential areas in this respect covers everything from slums to sub-urban societies which are meant for dwelling purpose. Flats/apartments in Gurgaon are further developed up to an extent where all the necessary facilities which are required for day-to-day living are developed along with concrete buildings and infrastructure. The residential real estate is further categorized into different categories which are as follows:
Single Family Homes: These are standalone houses which are gaining much importance these days. In India, most of the residential housing projects are built in form of single family homes depending on the availability of land. It is meant for a single family dwelling with all essential facilities required for dwelling purpose. Often one or more walls of a single family home is attached to another dwelling unit but all other facilities are separate.
A condominium is a living space which is much similar to an apartment where the building structure is divided into different units which are owned separately. There are common areas on each floor which are owned jointly by the number of houses at that particular floor. This is a more common trend in United States and Canadian provinces but are now much adopted all across the world including India, where commonly it is termed as an apartment.
This is a hybrid class of dwelling space which falls between a single home and a condominium. In India, it is generally termed as Duplex. These offer much privacy to its dwellers as compared to flats/apartments in Gurgaon. The only difference between a duplex and a townhouse is that a duplexes have only two connected homes while a townhouse has middle units that are attached on either side.
These are the least common residential units which are developed by bifurcation of a large single home into two distinct units. These can have either multiple floors or a row-house pattern. The idea was generated from investment point of view where one portion is utilized for living purpose and leave another one for a fixed price to some other family.
Residential real estate has always been an essential part of real estate as the demands for houses with increasing population has increased and this makes real estate sector really depend on it even in the most crisis period. In the coming time also, residential real estate will witness some major changes in its types and developers will come up with innovative trends and technologies to offer affordable and secure dwellings for people.