Investment & yield
Capital Appreciation
Capital appreciation is the increase in a property's market value over time, realised as profit when it is sold for more than it cost.
Capital appreciation is the growth in an asset's value driven by factors such as location demand, infrastructure, supply constraints, and broader market conditions, and it is one of the two main sources of property return alongside rental yield. Off-plan buyers sometimes target appreciation between purchase and handover, though values can fall as well as rise. Historic or projected appreciation is not a promise of future performance, and this is general information rather than investment advice.
Related terms
- ROI (Return on Investment) — ROI measures the total gain from a property relative to what was invested, combining rental income and any change in value.
- Gross Yield — Gross yield is annual rental income divided by the property's purchase price, expressed as a percentage before any costs.
- Oqood (Off-Plan Registration) — Oqood is the registration of an off-plan property purchase, recording the buyer's interest in a unit that is still under development.
- Price per Square Foot — Price per square foot is a property's price divided by its area, used to compare value across units of different sizes.