What is the main focus of the principle of anticipation in real estate?

The principle of anticipation in real estate primarily revolves around the concept that potential buyers consider the future benefits associated with property ownership when making decisions. This principle asserts that the value of a property is influenced by the expected future advantages or revenues that the buyer anticipates deriving from it. For example, the future appreciation of property value, anticipated rental income, or potential development opportunities can all contribute to a buyer's perception of value.

This focus on future benefits is critical because it highlights how real estate investment is not solely about current market conditions, but rather heavily involves foresight about what may happen in the future. Buyers are inclined to pay a premium for properties that they believe will yield higher returns or benefits in the long run, thus shaping the overall demand in the market.