Definition
An increase in the value of a property over time, driven by market conditions, improvements, or inflation.
Example
Forced appreciation comes from raising net operating income; market appreciation comes from cap rate movement and demand.
Related terms
Frequently asked questions
What does Appreciation mean in real estate?
An increase in the value of a property over time, driven by market conditions, improvements, or inflation.
How is Appreciation used in practice?
Forced appreciation comes from raising net operating income; market appreciation comes from cap rate movement and demand.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.