What does the term "development" refer to in real estate?

The term "development" in real estate specifically refers to the process of improving raw land. This can encompass a variety of activities, including the construction of buildings, infrastructure development, and enhancements to land that prepare it for commercial, residential, or mixed-use purposes. Development transforms raw or underutilized land into functional and productive spaces and often involves obtaining necessary permits, planning, and collaboration with various stakeholders such as architects, contractors, and city planners.

This term distinctly separates the activities involved in developing land from those of buying and selling properties, assessing market trends, or marketing real estate. While all these activities are important in the real estate sector, development focuses specifically on the enhancement and conversion of land into usable sites.