Does land depreciate over time according to appraisal standards?

Land typically does not depreciate over time according to appraisal standards. Instead, land is considered to have a value that generally appreciates due to factors such as scarcity, demand, and potential for development. While improvements made on the land, such as buildings, may lose value over time due to physical deterioration or obsolescence, the land itself usually retains or even increases its value.

This concept is important in real estate appraisal, as it distinguishes land value from the value of any structures on it. Factors like location, zoning changes, and market trends can enhance land value, contributing to its long-term appreciation. Understanding this principle is crucial for appraisers when evaluating a property's overall worth and performing comparative market analysis.