Appreciation
ap·pre·ci·a·tion
/əˌprēSHēˈāSH(ə)n
In Real Estate, Appreciation is an increase in value of an asset over time. This increase in value can happen naturally or be forced.
Natural Appreciation is the increase in the value of the asset (real estate investment) due to changes in the property market. (See Natural Appreciation).
Forced appreciation- increasing the value of the asset due to investor actions. (See Forced appreciation).
Just because the value of an asset appreciates, does not mean that its owner realizes its increase, but if the owner revalues the asset at its higher price on his/her financial statements this represents a realization of the increase.
If your property appreciates over the amount you owe on the mortgage, we call that equity.
Similarly, capital gain is a term used to denote the profit achieved by selling an asset that has appreciated in value.
Appreciation is the opposite of depreciation.