capital growth defined

Capital growth, also known as capital appreciation, refers to the increase in the value of an asset over time. In the context of real estate, capital growth specifically pertains to the appreciation in the market value of a property.

This increase in value can occur due to various factors such as changes in market conditions, economic growth, demand-supply dynamics, improvements to the property, or inflation.

Capital growth is a key consideration for real estate investors as it represents the potential for profit and wealth accumulation over the long term. Investors often seek properties with strong capital growth potential to maximize returns on their investments.