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Real estate is the term used to describe the value of land and buildings based on their potential use, rather than their current use. This concept is important in the world of finance, as it allows for the assessment and evaluation of a property's worth beyond its current state. In other words, it takes into account the potential for future development or use, providing a more accurate and comprehensive understanding of its value. This understanding is crucial for making strategic financial decisions in the real estate market.
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