Introduction to different types of properties
The common idea of property is just a measurement of land or an asset, but it is actually much more than that. It is essentially the relation a person or a legal entity has with an object, and this relation gives certain rights to the person over the said object.
Real estate properties are largely classified into three major categories as follows:
Residential Property: These are the plots or lands which are meant for building properties for residential purposes. In simple words, you can get these lands for living. These include pieces of land acquired with intentions of building houses, bungalows, villas, builder flats, etc.
Industrial Property: There are certain plots of lands which the government issues for the use of industrial purposes. In such lands, you would mainly spot buyers who have plans to develop a manufacturing brand or already own a huge production company. The land upon which a large automobile manufacturing plant is constructed is a suitable example of this type of property.
Commercial Property: More commonly known as commercial real estate property or income-generating property, it is a designated piece of land that is used to construct a structure with the intention of generating income or sustaining a business, rather than for residential purposes. This government-designated land is largely acquired for the sole purpose of profit generation. Large-scale apartment complexes are a perfect example of this type of real estate property.
Commercial property and its types
To give a brief idea, the piece of land designated by the government, is allowed to be used for the construction of a structure that can be used as an income-generating source, is known as a commercial property. These types of properties are generally used for the construction of offices, schools, hospitals, malls, hotels, warehouses, hostels, etc. The types of commercial properties are further elaborated as,
High-rise buildings and skyscrapers that are used as offices by either single or many different companies as multi-tenanted. There are majorly three categories of offices.
A. Class A Office – Buildings that have exceptional quality are built and offered at rates, higher than the area’s average rates. These offices are equipped with state-of-the-art facilities and offer many different amenities generally not found in offices. Well equipped security systems, power backup generators are some of the features offered in these types of office buildings.
B. Class B Office – Competent-built buildings offered at the standard market rate of the area generally come under this category of offices. All the basic facilities are provided but the quality is some notches lower than A-Class Office buildings.
C. Class C Office – Offered at rates that are known to be below average than the area’s standard market price. These are most commonly used for accommodating tenants, also medical offices, etc.
This type of commercial property comprises retail outlets, restaurants, shopping malls, etc. These are generally multi-tenanted with different retail outlets and stores. Single-tenant would include outlets of large big-box centers that include chains of well-established and famous companies. .
- Multi-Family Large scale apartments:
This is a group of high or mid-rise buildings that accommodates more than a single-family. These buildings have single or multiple apartments on the same floor, depending upon the size and design of the building. These are further classified into, High-rise, Mid-rise, Walk-up, Manufactured housing community, Special-purpose housing, etc.
Establishments that are known to provide meals, accommodation and other tourist services are classified as Hotel-type of commercial properties. These can be independent or belong to a well-established chain of hotels. The further classification includes Limited-service, Full-service, Boutique, Casino, Extended-stay and Resort.
The type of property that is largely acquired for the purpose of profit generation is constructed on land that is designated by the government as Commercial real estate land, which is known as commercial property. Hotels, schools, hospitals, etc. all come under this type of property. These pieces of land are sold at much higher rates per unit than residential lands.