A densification clause is a provision in a real estate contract that allows for the increase of building density on a property. This clause typically outlines the conditions under which the property owner can add more buildings or units to the existing structure, thereby increasing the overall density of the development. This can include factors such as zoning regulations, environmental impact, and community approval. The purpose of a densification clause is to provide flexibility for future development while also ensuring that it is done in a responsible and sustainable manner. It is often used in urban areas where space is limited and there is a demand for more housing or commercial buildings. However, it can also be found in suburban or rural areas where there is a desire to preserve open space while still allowing for growth and development. In short, a densification clause is a tool used to balance the needs of development with the preservation of the surrounding environment and community.