Which principle states that the value of a property can increase due to the quality of surrounding properties?

The principle that states the value of a property can increase due to the quality of surrounding properties is known as progression. This principle highlights how the value of a less valuable property can be positively influenced when placed in a neighborhood or area that features higher-valued properties. Essentially, when a property is situated among better-quality homes or commercial buildings, it may be appraised at a higher value than it would be if it were isolated from those higher-quality surroundings.

This situation often occurs in neighborhoods where a trend toward improvement is evident, and as a result, buyers may be willing to pay a premium for properties in that area, anticipating continued value growth. In essence, progression captures the idea that the overall desirability and appeal of a neighborhood can enhance the perceived value of individual properties within it.

Other principles mentioned are related to different aspects of property value but do not specifically address the influence of surrounding properties. Conformity refers to the idea that property values are maximized when a property is similar to others in the area, substitution considers the price of similar properties when determining value, and contribution refers to how much a specific feature adds to the overall value of the property.