In real estate, what does utility measure?

Utility in real estate refers to the usefulness or functionality of a property, specifically how well it meets the needs and desires of its occupants or users. This concept measures the degree to which a property can fulfill the demands of its intended purpose, whether it's residential, commercial, or industrial use. Higher utility indicates that the property effectively serves its intended function, enhancing its desirability and potentially its value.

When considering utility, factors such as layout, location, and features contributing to a space's livability or functionality come into play. A property that efficiently accommodates its users is likely to have a higher demand in the market, influencing its perceived value and attractiveness to potential buyers or renters.