Real Estate VS Real Property

HomeReal EstateReal Estate VS Real Property

Although the terms Real estate and real property sound conversant but they are too distinct to be jumbled. Realizing the difference one could simply state the gradations of the property they own and how they possess it. Real property is a term that broadens the horizon of real estate to the rights related to it.


  • Real estate encloses the physical land, constructions, and capitals attached to it.
  • Real property broadens up with the structural aspects of real estate to a package of its possession and usage rights.
  • Transparency is of great interest in the real estate world where various concepts apply to landlords or lodgers or leasers.
  • The common people might think of real estate to incorporate real property but the legal distinction makes them significant.


In simple words, a specific cut out of the earth plus any natural or manmade developments on it is called real estate. Natural developments cover up the natural blessings including vegetation, water, mineral deposits, and oil. The man-built advancements are the physical structures: the buildings, pavements, and hedges. Real estate is mainly extended into two categories:

Residential Real Estate is a piece of land with development on it allocated to human beings to live on it by single or multiple folks. It may be chartered or owned. It is mostly referred to as rented property just like the capital smart city Islamabad

Commercial Real Estate is determined by its usage in business and entertainment for profit. It comprises offices, malls, restaurants, and other activities that focus purely to make money. They can be both leased or owned.

Industrial real estate is a subdivision of commercial real estate and comprises properties where industrial trade, safe storage, design, and assembly are done.


Real property is somewhat a complicated term and is usually taken into use by relatively fewer people. It covers a broader spectrum of the real estate world and is termed to include not only the cut out of land and the advancement on it but also the rights and regulation to carry out any activity on it.

One primary aspect to know about real property is that renting and leasing a property is written down in real property rather than real estate.

One interesting point that clicks into the mind is where the moveable property that a person possesses is a tale. So they are not related directly to the real property rather they are termed as personal property. Personal property includes moveable items like cars or livestock. Together the personal properties and real properties of an owner combine to form the property they possess including the land and its rights involved.


Real property can be comprised in other words of real estate and some bundles of rights that they start to possess with the land they purchase. This package systematizes the rights related to real estate. Landlords are granted the power they can use over the property given to someone else whether leased or lodged.

This covers five distinct rights of the owner of an asset

  • Ownership includes the right to occupy an asset.
  • The right to control signifies the demands of your own interest in the premises.
  • Right to use means that you can use the property without the interference of others.  
  • The right of exclusion is the ability to deny ownership of other interests or uses with the premises.  
  • Disposal rights reside with the decision of whom should the property be sold.


There exist some complicated exemptions and limitations of these rights and their legal handlings. . For example carrying out a commercial business is against the law and is thus prohibited in a residential neighborhood. Moreover, a landlord is prohibited to build a skyscraper where there is the prohibition of building over a certain height. Also, they are obliged to pay taxes and keep assurance of legal responsibility. If not their property rights are likely to be revised accordingly.


To conclude we can just simply say that real property is just real estate with a package of accustomed rights giving an owner the support to feel the ownership over those physical structures. An important tip is to exercise trading approaches to deal with different circumstances in the market and denote accordingly.


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