Real Estate Definition, Types, and Differences with Property

There are many business options for you to pursue and take seriously. The real estate business is one of them. It is not surprising then that this business is often confused with real property

But basically, real estate implies land and objects in the form of buildings or other things that stand permanently on the land. Land that covers an area of ​​land that is still in the program to be able to make housing buildings, buildings, schools and so on. 

Business activities in the type of real estate are classified as very potential for the long term. Various regions in the territory of Indonesia have developed lands that have not been used optimally to be further managed as real estate, property and other needs fulfillment businesses. 

In the future, it is estimated that this business will continue to occupy the main position in improving the economy because it is able to adapt to the demands of the global community and the progress of the times. 

Definition of Real Estate

Real Estate Definition, Types, and Differences with Property

Real estate is the housing business or buying and selling of buildings as we know it today which is held by leading developers in Indonesia, and includes more than just the housing business. 

Enthusiasts for this business are increasingly lively along with regional development and development in various regions in Indonesia. Companies are chasing each other to present a real estate profile and performance that attracts many parties. 

Real estate management refers to all business processes and activities that involve managing property rights, residential, industrial and commercial properties that include shopping centers and apartments. 

However, you don’t need to worry because with the help of an Asset Management System, you can manage all your assets in real time and monitor asset usage, schedule maintenance and calculate ROI ( Return on investment ), expense and asset value automatically. 

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Real estate can be used for commercial purposes such as operating a shop or office, or for industrial purposes such as operating a mine or factory. But the  most common type isresidential real estate used for housing. 

Types of Real Estate

1. Residential 

Residential is a building that companies use for residence, for example for housing, flats, and condominiums. The basic difference between condominiums and flats. Condos are apartments that are sold to be owned by each occupant. 

The owner has the right to use, rent, and sell to others. While flats are also commonly known by companies as multilevel housing. In this residential area there are usually places for small businesses such as minimarkets and home industries.

2. Commercials 

Commercial is real estate that companies use for commercial purposes and to make a profit. Some examples  are office buildings, warehouses, and hotels. 

Commercial property refers to land and buildings that a company uses exclusively for business purposes such as apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centers, shops and theaters. 

3. Industrial 

Industrial is a business sector attached to land. Some examples of these industries are: 

  • The plantation sector, in this case also includes mining and forestry
  • The housing sector, in this case related to residential, multifunctional housing and residential real estate
  • Based on these groupings, this type of housing can be in the form of buildings or plantations that are tied to certain land and managed by the company for its clients. 
  • The commercial sector is buildings that companies use for business activities such as offices, shopping centers, apartments and hotels. 
  • The industrial sector, in this case, includes light, medium and heavy industry.
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The difference between Real Estate and Property

The difference between real estate and property is physical and ownership. Real estate refers more to physical (land and buildings), while Real Property refers more to physical ownership (land and buildings). You could say Real estate is a subset (part) of Real Property

On the other hand, real property is the interests and rights relating to the ownership of land, buildings and improvements attached to them. Real estate only focuses on the physical aspect, namely buildings or land, while property is not only limited to that but also on the basis of ownership of both the building and the land. 

An example of the difference between real estate and property is that a land owner has a building, someone who owns land without a building on it is called a person who owns real property

A land owner who owns a building on it, a person who owns land with a building on it is referred to as a person who owns real property. Landlords who rent land. Someone who rents land, then builds on that land is called owning real estate

As well as the owner of an apartment, someone who owns an apartment is said to own real estate and not own real property. A real estate ownerhave no ownership or rights to the land on which the apartments are built. 

Manage Automated Real Estate Management

RE management to be able to optimize your company management in addition to making it automated. Along with the development of management technology, Estate management has now been integrated automatically using a system that supports management. 

In contrast to the previous system which used manual data input and management, the estate management system presents data on the needs and needs of managers automatically. 

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One of the systems currently being developed is property software that is often used in Indonesia and property management, namely Smart Estate Management

This kind of estate management system is an important component for a company, especially in the property industry such as estate management so that management can run effectively and efficiently. 

This software has complete functions that have been integrated with the dashboard used by the manager and the smartphone mobile apps for your company. 

The work system of this property system streamlines work time and accuracy in controls and reports. 

If you have many properties in the property industry, the Smart Estate Management system can help you because this system has been consolidated into one, making it easier to report on each property you own. 

Estate Management can view data in real time, this is useful for analyzing data for management. 


The real estate business has a lot of information regarding data that is prone to being hacked. Data storage in a centralized system to prevent violations of the data. In accessing data, there is high security because we can monitor every activity closely. This feature can help increase customer trust. 

To run a real estate business well, companies must continue to adapt to market conditions. Investing in a good ERP system will also bring great benefits in the long run. 

The company can get the business as a whole. Manage the sales process, project execution, financing and general management of your property business with Real Estate Softwarebest of HashMicro. 

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