Additions to or enhancements of raw land or structures on real property that are permanently affixed or attached and add usefulness and value to the property, rather than simply repairing or restoring the property to its original condition, are improvements. Improved land is real estate that has been made more usable and valuable through the provision of certain utilities and services, such as electricity, telephone, water or sewer.
Where a vacant lot may not have any improvements other than utilities, it is improved by a structure being built upon it and further improved when a fence is later erected on it. The value of the property commonly rises to a multiple of the raw land cost with each on-site improvement.
Real estate is defined by and its value related to its physical (static) attributes, environmental attributes and linkages. Real estate comprises the site of the land (plot), the externalities that surround it (neighborhood) and its connection to other real estate, ancillary facilities and uses (infrastructure).