Piece of land and any structures that are (more or less) permanently attached to it.

Also referred to as realty, this includes the air above the piece of land and the ground below it, as well as any natural resources it encompasses. This is an investment that is highly dependent on the condition of its immediate surroundings, primarily affected by local factors.

The term real estate often refers more specifically to property purchased for investment purposes. Although the effectiveness of real estate as an inflation hedge varies depending on the location, typically the increase in value of real estate in general tends to outpace that of inflation. There is also leverage potential in real estate since a high percentage of the investment may be made with debt funds. Some real estate investments, including residential and commercial property, produce annual income. Real estate income property that is directly managed may provide tax deductions such as depreciation expense, interest expense, and property taxes.

Real estate is often distinguished from personal property, which is defined as temporary or movable.