Types of Real Estate Every Investor Should Know
- Joseph Rutinu
- Aug 24
- 2 min read
Real estate is one of the most proven ways to build wealth. But before you invest, it’s important to understand the different categories of real estate — because each comes with its own opportunities, risks, and returns.
Types of Real Estate;
1. Residential Real Estate
This includes properties where people live:
Apartments & condos
Townhouses
Multi-family units
Why invest? Residential is always in demand. People will always need housing, making it one of the most stable forms of real estate investment. Rental income and long-term appreciation are key drivers here.
2. Commercial Real Estate
This covers properties used for business:
Office spaces
Retail stores & shopping malls
Hotels & resorts
Mixed-use developments
Why invest? Commercial properties often yield higher returns than residential — but also require higher capital and careful management. Tenants are usually businesses, so leases can be long-term and more profitable.
3. Industrial Real Estate
These are properties used for production, storage, or logistics:
Warehouses
Factories & manufacturing plants
Distribution centers
Why invest? With the rise of e-commerce, demand for warehouses and logistics hubs is booming. Industrial real estate typically offers stable, long-term rental income.
4. Land
Raw land, farmland, or plots for development.
Agricultural land
Undeveloped land
Infill lots (within cities)
Why invest? Land is finite — they’re not making more of it. Value often comes from appreciation, rezoning, or future development potential. High-risk if left idle, but huge returns if well-positioned.
Conclusion
Each type of real estate comes with different levels of risk, return, and management needs. Savvy investors often diversify across multiple categories to balance short-term income with long-term appreciation.
Whether you’re looking at residential apartments in Nairobi, commercial offices in the CBD, or industrial warehouses near transport hubs — knowing your real estate types helps you invest smarter.
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