What term refers to an increase in the value of a property?

The term that refers to an increase in the value of a property is appreciation. This concept is essential in real estate and finance, as it signifies the growth in monetary value that can occur over time due to various factors such as market demand, improvements made to the property, or economic conditions.

Appreciation indicates a favorable change, suggesting that an asset is gaining value rather than losing it, which is critical for investors and homeowners alike. Understanding appreciation helps individuals make informed decisions about buying, selling, or holding onto property investments, as the potential for increased value can significantly impact financial outcomes.