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Appreciation

uh-PREE-shee-AY-shuhn /əˌpriːʃiˈeɪʃən/

nounB2GRETOEFLIELTS

formalbusinessfinance

An increase in value over time.

In real estate, property appreciation refers to the increase in a property's market value, often due to factors like inflation, demand, improvements, or economic growth.

The story behind the word. Just like 'appraisal', 'appreciation' traces its roots back to the Latin 'ad' (to) and 'pretium' (price, value). To 'appreciate' something originally meant 'to set a price on it' or 'to value it'. Over time, it evolved to mean 'to increase in value' or 'to recognize the value of'. So, when your property appreciates, its 'price' or 'value' has gone 'up to' a higher level!

Word relationships

Increase in value: More descriptive, but 'appreciation' is the specific financial term.
Gain: Broader term for profit or increase.

Depreciation: Decrease in value over time.

Commonly confused with

Gratitude: One meaning of 'appreciation' is thankfulness; the other, in finance, is an increase in value.

Word family

appreciate (verb): To increase in value; to recognize the full worth of.

Collocations

property appreciation
capital appreciation
market appreciation
rate of appreciation
significant appreciation

Example sentences

"Homeowners in the booming neighborhood saw significant appreciation in their property values over the last decade." Property appreciation is a key investment goal.
"The new school district and improved local amenities contributed to the rapid appreciation of homes in the area." Various factors influence appreciation.

Memory hook

APPRECIATION means the value of your property has gone UP in PRICE. Up in Price

When not to use

While 'appreciation' can mean gratitude, in finance and real estate, it specifically means an increase in value. Don't confuse the two.

Fun facts

While property generally appreciates over long periods, short-term fluctuations and economic downturns can lead to depreciation.