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

The term "urbanization" in real estate specifically refers to the transition of rural areas into urban areas. This process involves the movement of populations from countryside to cities, leading to the expansion of urban land, increased infrastructure development, and often a change in land use from agricultural or undeveloped land to residential, commercial, and industrial uses. Urbanization typically reflects broader social and economic trends, such as industrialization and the search for employment opportunities.

As populations grow and migrate toward urban centers, cities expand, and rural areas may become more populated, leading to a blend of urban characteristics in what were previously rural regions. This shift influences real estate markets significantly, driving demand for housing, commercial properties, and infrastructure in newly urbanized locations.