Functional utility contributes to which factor in real estate?

Functional utility refers to the degree to which a property meets the needs of its occupants or users. It directly relates to how well the design and layout of a property can serve its intended purpose. This concept is crucial in determining marketability, as properties with high functional utility are more attractive to potential buyers or renters due to their suitability for specific needs.

When a property has strong functional utility, it typically offers features that enhance its appeal, such as a well-thought-out floor plan, necessary amenities, and efficient use of space. This increased attractiveness enhances the chances of the property being sold or rented quickly, thereby improving its marketability. That is why the correct answer is connected to marketability; a property that effectively serves its intended purpose is more likely to appeal to buyers and tenants in the competitive real estate market.

The other factors listed—net income, depreciation, and operational costs—are influenced by different aspects of real estate and do not directly stem from functional utility. While they may interact with a property's marketability, they do not specifically capture the inherent usability and attractiveness that functional utility represents.