Property Valuation

The principle of 'progression' in real estate valuation holds that:

AThe value of a property decreases over time due to depreciation
BA lower-valued property benefits from being located near higher-valued properties✓ Correct
CA higher-valued property is negatively affected by lower-valued neighboring properties
DProperty values always increase in proportion to inflation

Explanation

The principle of progression states that a lower-value property's worth tends to be positively influenced by its proximity to higher-value properties. The inverse is the principle of regression.

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