What principle dictates that property value increases with the presence of complementary land uses?

The principle that dictates property values increase with the presence of complementary land uses is the Principle of Contribution. This principle suggests that the value of any component of a property is determined by its contribution to the overall value of the property and its surroundings. When properties have complementary land uses, such as residential areas near schools or parks, the synergy created can enhance the overall value of the properties involved. Therefore, the presence of supportive and compatible land uses generally leads to increased property values, as these uses contribute positively to the location's desirability and livability.

The other principles mentioned, such as the Principle of Substitution, which focuses on the idea that a property's value is influenced by the cost of acquiring a similar substitute property, and the Principle of Highest and Best Use, which refers to the optimal use of a property that maximizes its value, do not specifically address the impact of complementary uses on property values. The Principle of Conformity, which suggests that property values are maximized when properties are similar in use and style, also does not directly capture the concept of value increase through complementary uses.