What is real estate Appreciation?

1 Answer(s) | Legal & Tax

RE: What is real estate Appreciation?

The increase in property value over a period of time is known as real estate appreciation. Appreciation occurs when the market value of the property is higher than the invested amount in that real estate asset. It is also known as capital appreciation. Capital appreciation is the part of investment excluding the primitive investment.

For example:

Suppose George purchased a home for INR 1.2 crore in a posh area of Gurugram, during 2013. The property rates in that area experienced heavy uprising in prices due to an infrastructure project announcement.George wants to cash in on his investment and contacted a real estate broker. The broker estimated current worth for his home around INR 1.9 crore. Over a few years, real estate asset has given an appreciation of INR 70,00000.

Answered on July 6, 2020.
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