The economic principle of anticipation states that value is created by what?

The economic principle of anticipation posits that the value of a property is largely determined by the expectation of future benefits that it can provide to its owner. This theory emphasizes that the prospective use and benefits of a property are critical to its overall valuation. For example, if a property is likely to generate rental income in the future or appreciates in value over time, its current worth will be higher due to these anticipated benefits. This principle encourages investors and property owners to consider not only the present conditions but also what they expect to receive in the future, which directly influences their investment decisions and assessments of value. Thus, anticipation of future benefits is the cornerstone of understanding property valuation through this economic lens.