Real Estate, as accepted definition worldwide refers to land, as well as any physical property or improvements affixed to the land, including houses, buildings, landscaping, etc.,
There are a variety of ways to invest in real estate, ranging from real estate investment trusts (REITs) to buying rental property or multi-family housing or just investment in vacant land on long term.
For investors turned off by the idea of fixing plumbing and dealing with tenants, REITs offer the opportunity to participate directly in the ownership or financing of real estate projects. REITs are tradable interest (much like a share of stock) in a pool of real estate-related assets. REITs own, and often operate, income-producing real estate such as office buildings, apartments, shopping centres, warehouses and hotels. Many REITs specialize in one property type, such as offices, apartments or regional shopping malls.
Most investors buy REITs for their rich dividends, although those dividends are usually fully taxable. Keep in mind, though, that each real estate sector is affected by different economic cycles. Larger, diversified, or geographically dispersed REITs are less exposed to regional weakness and major economic cycles. On the other hand, smaller, more specialized REITs often provide the greatest growth potential.