All of us is not an expert in everything. A person who is an expert in literature might not have a good hold over finances or Real Estate, infrastructure, etc. If you are the one who is new in this field and is confused regarding such terms, then you are in the right place!
In this article, you will get to know the basic difference between Real Estates and Infrastructure.
So, let’s begin with Real Estate. In common parlance Real Estate means land as well as land with permanent improvements. Empty land or land without any permanent improvement is likewise viewed as Real Estate.
Permanent improvements include both natural and man-made features or items that are permanently attached to the land. Natural improvements that are permanently included with land are trees, water, soil, minerals, pond, and lake etc. On the other hand, man-made improvements are buildings and houses, etc. The key feature of real estate property is that it is immovable. Various kinds of personal property like jewelry, furniture, dresses, books, vehicles, small equipment, boats, and electronic gadgets etc., are not permanently attached with land and therefore are not considered to be Real Estate property.
Real estate property can be categorized into four types such as residential, commercial, industrial, and land.
Under the residential type comes houses, apartments, etc. The commercial type includes office buildings and the like. Industrial type includes factories, warehouses, etc. The land is open land that will be used in construction later on.
Now, let’s have a basic idea of Infrastructure. The term ‘Infrastructure’ first showed up in use in the last part of the 1880s. It indicates the set of fundamental facilities and systems that are available in a particular area.
The word ‘Infrastructure’ came from two French words, i.e., ‘infra’ meaning ‘below’ and ‘structure’ which means ‘building’.
Thus, infrastructure is the basic physical or organizational structure that is crucial for the operation of a society or an enterprise. Infrastructure also includes various kinds of services that are very important for the improvement of the overall quality of life of the people of any particular area or region. Examples of infrastructure can be transportation facilities (roads, highways, bridges, etc.), telecommunication, water supply, etc. It has both direct and indirect connections with the economic status of a region. A positive relationship prevails between infrastructure and development, specifically economic development in any area or region or country. For instance, if a bridge is constructed to connect two lands, then the people living on both sides will be benefitted from it. They will travel; there will be trade, cultural mingling; thus, the society will develop.
Thus, infrastructures can be witnessed to be the foundation upon which the economic progress or development of the society largely depends. The sector infrastructure mainly includes transport networks (road, rail, water and air), communication networks (telephone, mobile, internet, newspaper, TV, and radio etc.), dams, bridges, sewers, tunnels, and water and power supply, etc. The development of infrastructure is quite important for the overall prosperity of the people of a region or country.
Infrastructure is capital intensive, which means, a large amount of investment is required for the development of infrastructure. For example, it is beyond doubt that a lot of money is needed for the construction of a road, and even its repairing! The projects that are related to the development of infrastructures are mainly funded publicly, privately, or through public-private partnerships.
In a broad sense, infrastructure can be divided into two types, i.e., hard infrastructure and soft infrastructure. Hard infrastructure includes physical networks like roads, bridges, tunnels, and railways etc. On the other hand, soft infrastructure includes health services, educational programmes and services, administration and enforcement of laws, recreational facilities, and emergency services, etc.
The development of infrastructure is largely associated with the increase of the value of real estate property. As infrastructure is permanently attached with land therefore in many cases it is considered as a part or subset of real estate. Although for some people Real Estate and infrastructure are alike, in reality, there are some significant differences between them.
Thus, in this article an attempt has been made to explain you the basic difference between Real Estates and Infrastructures.
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