What fundamental factor might lead to a property's value increase over time?

A fundamental factor that can lead to a property's value increasing over time is the improvement in local infrastructure. When infrastructure such as roads, public transportation, schools, and hospitals develop or enhance in a community, it typically makes the area more attractive to families and businesses alike. As a result, there can be a greater demand for housing in that area, driving up property values. Improved infrastructure facilitates easier access to essential services and increases the convenience of living in the area, which enhances the overall desirability of the location. Furthermore, such developments often lead to economic growth, which can also contribute to higher property values as more people seek to relocate to the area for its improved amenities and opportunities.

In contrast, factors like decreased taxes and reduced interest rates can also have short-term positive effects on property value, but they do not have the same lasting impact as infrastructure improvements do. Increased regulation typically tends to make real estate development more complex, which can negatively affect property values instead.