What do air rights refer to in the context of property ownership?

Air rights refer to the ownership of the space above a piece of real property, which can be utilized, developed, or leased in various ways. This concept is critical in real estate and urban planning, as it allows property owners to take advantage of the vertical space in addition to the land itself. For instance, if a property owner has air rights, they may choose to build upward, developing a high-rise building above the land they own, thereby maximizing the property's value and use.

Understanding air rights is important because they can be sold or transferred independently from the land itself, providing additional avenues for revenue or development opportunities. This is particularly relevant in densely populated urban areas where vertical development is common. The essence of air rights encapsulates the idea that property ownership does not just include the surface rights but can also encompass the space above that land, subject to legal limitations and local zoning laws.