Appreciation, in the financial context, refers to the increase in the value of an asset over time.
It commonly applies to real estate, currencies, or investments.
For instance, real estate appreciation occurs when a property’s market value rises. In the context of currencies, appreciation signifies an increase in the value of one currency relative to another.
Asset appreciation is a key factor in investment returns and wealth accumulation, often influenced by economic conditions, market demand, and other factors impacting value growth.