What does "subdivision" refer to in real estate?

In real estate, "subdivision" specifically refers to the process of dividing a larger parcel of land into smaller lots for the purpose of sale or development. This can involve creating individual lots for residential homes, commercial properties, or mixed-use developments. The subdivision process often requires compliance with local zoning laws, planning regulations, and may involve securing approvals from government authorities to ensure that the divided parcels meet necessary standards for infrastructure, utilities, and access.

When land is subdivided, it can significantly enhance its value by creating multiple, sellable parcels from one larger piece, making it a fundamental concept in real estate development. Unlike other terms related to zoning classifications or tax classifications, which pertain to legal and regulatory aspects, the act of subdivision is directly tied to land use and market practices.