What is Forced Appreciation in Real Estate?

What is Forced Appreciation in Real Estate?

Forced appreciation in real estate refers to the increase in property value resulting from intentional improvements or modifications made by the property owner. These enhancements can include renovations, upgrades, adding amenities, improving property management, or altering the property's use to increase its income potential. Unlike natural appreciation, which depends on market conditions, forced appreciation is directly influenced by the owner's actions to boost the property's appeal and profitability.