Real estate refers to land or fixed assets like; residences, buildings, and factories built upon it. Real estate is considered an alternative investment even though it has been an essential investment for investors for thousands of years. The real estate market is segmented into the commercial, industrial and residential sectors.
Real estate becomes a liquid investment when it is securitized – when shares in a pool of real estate assets are resold to investors, as in the case of REITs (Real Estate Investment Trusts).
Physical real estate and securitized real estate are two critical aspects of real estate as an investment. Many investors hold physical real estate as primary or secondary residences or investment properties. Physical real estate has several distinguishing features.
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