An opportunity zone in real estate is a designated area where investments, such as in Qualified Opportunity Zone Funds (QOF) or Qualified Opportunity Zone Businesses (QOZB), are encouraged through tax incentives. By investing in these zones, you can defer or reduce capital gains taxes and enjoy benefits like stepping up your tax basis to the property's fair market value after holding for 10 years. It offers unique tax benefits for investors and is part of an overall strategy to boost economic growth in specific regions.