What is meant by “property appreciation”?

Property appreciation refers to the increase in a property's value over time. This phenomenon occurs due to various factors, such as improvements in the neighborhood, a rise in demand for housing, overall economic growth, and inflation. As market conditions change and properties become more desirable, their values typically rise, which is beneficial for homeowners and real estate investors.

Understanding property appreciation is crucial for anyone involved in real estate, as it plays a significant role in investment decisions, market analysis, and predicting future property values. It is also vital for calculating potential returns on investment when selling a property, as a higher market value at the time of sale can lead to greater profits.