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Appreciation
Property appreciation is an increase in a property's market value over time.
Property appreciation is an increase in a property's market value over time. Changing market conditions or improvements can contribute to that increase; appreciation describes a value change rather than a rental payment.
Property operations example: identify the valuation dates and evidence used when describing a change in value. Keep an observed change separate from an assumption about future appreciation in a projection.
Source: Freddie Mac, My Home Glossary, Appreciation and Property Appreciation.
Frequently Asked Questions
Does appreciation mean the property received more rental income?
No. Appreciation concerns market value. Rental receipts and operating income are separate measures that require their own records.
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