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

In real estate, the term "subdivision" specifically refers to the process of dividing a larger parcel of land into smaller lots for the purpose of development and sale. This process often involves creating new property boundaries and may include the development of infrastructure such as roads, utilities, and other amenities to support the new smaller lots.

Subdivision is a critical aspect of real estate as it allows for more efficient use of land resources and provides opportunities for residential and commercial development. The result of a subdivision can lead to the establishment of new neighborhoods or commercial areas, making it a fundamental concept in urban planning and real estate development.

In contrast, the other choices do not accurately capture the definition of subdivision. Selling individual properties focuses on the transaction aspect rather than the division of land itself, the purchase of property for commercial use does not inherently involve dividing land, and consolidating multiple properties into one describes the opposite process of subdivision.