What does the concept of "Anticipation" in real estate entail?

The concept of "Anticipation" in real estate refers to the expectation of future benefits that contribute to the present value of a property. This principle is rooted in the idea that the value of a property is influenced by the expected future income or appreciation it may generate. Buyers and investors consider potential future cash flows, such as rental income or resale value, when valuing a property today. This means that if a property is expected to yield significant benefits in the future, its current value will be higher, reflecting that anticipated return. Thus, the core of anticipation lies in the connection between future expectations and present valuation, making it a fundamental principle in real estate appraisal.