Final answer:
Appreciation is the increase in the property's value due to external factors, including economic growth or developmental changes in the area.
Step-by-step explanation:
The increase in the value of a property due to outside factors is known as appreciation. Appreciation can occur for several reasons, like a major development in the area that makes it more desirable (e.g., the introduction of new technologies), or intrinsic changes in the economy, such as rapid economic growth of a trading partner. Conversely, factors such as rising interest rates can lead to a depreciation of property values, as the cost of borrowing increases. It's important to understand the difference between these terms as they have significant implications on property investments and economic decisions.