Explore commonly used personal finance terms.
Appreciation in real estate refers to the increase in property value due to factors like market demand, inflation, or improvements made to the property. Real estate appreciation benefits property owners, as the increased value can lead to higher selling prices or leverage for financing. Appreciation is a key consideration for real estate investors, as it contributes to equity growth and the potential for profit upon sale. However, real estate markets fluctuate, and appreciation is not guaranteed.
