What term describes the increase in value of a property over time?

The term that describes the increase in value of a property over time is appreciation. This concept is fundamental in real estate, as it reflects how properties tend to gain value due to various factors, including market demand, improvements to the property, location desirability, and overall economic conditions. Appreciation is an essential aspect for property owners and investors, as it can lead to increased equity and potential profit upon sale.

Understanding appreciation is crucial for evaluating long-term investment strategies in real estate. When a property's value appreciates, it can significantly benefit homeowners and investors through increased equity and improved financial standing, emphasizing the importance of monitoring market trends and property conditions over time.