What does 'property appreciation' refer to?

'Property appreciation' refers to the increase in property value over time, which can be influenced by various factors such as market conditions and improvements made to the property. When the demand for properties in a specific area rises or the overall economy strengthens, the value of real estate typically appreciates. Additionally, investments in renovations or enhancements can also contribute to higher property values. This concept is crucial for property owners and investors because it affects their equity and potential return on investment. Understanding property appreciation is essential for making informed real estate decisions.