In real estate, the principle of anticipation refers to what factor?

The principle of anticipation in real estate indicates that the value of a property is influenced by the expected future benefits or income it can generate. This principle suggests that buyers and investors will assess not just the current state of a property, but also what they anticipate it will provide in terms of appreciation, rental income, or other financial benefits. Essentially, if the market perceives that a property will yield greater returns in the future, its current value will increase accordingly based on that expectation. This concept highlights the forward-looking nature of real estate investment, where expectations for future performance drive current property values.