Capital Appreciation
Capital appreciation is the increase in property value over time, realized as profit when the asset is sold.
| Measurement Period | Calculation |
| Absolute appreciation | Sale price minus purchase price |
| Percentage gain | (Appreciation / Purchase price) times 100 |
| Annualized return | CAGR over holding period |
| After costs | Gain minus selling costs and improvements |
| Drivers of Appreciation | Impact |
| Location quality | Primary factor, 5% to 10% premium |
| Infrastructure development | New metro stations add 8% to 15% |
| Economic growth | GDP growth correlates 0.6 to 0.8 |
| Supply constraints | Limited new supply supports 3% to 5% annual |
| Property improvements | Renovations add 10% to 30% to value |
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