How does the Principle of Progression impact property valuation?

The Principle of Progression suggests that the value of a property is positively influenced by its location within a more desirable neighborhood or community. This principle operates under the notion that when a property is situated among higher-valued properties, its market value tends to increase, benefiting from the overall desirability and prestige of the surrounding area.

In affluent areas, properties typically exhibit greater demand due to their surroundings, which can lead to an increase in property values. Buyers are often willing to pay more for homes situated near higher-priced properties because these neighborhoods are associated with better amenities, services, and overall conditions that contribute positively to residential experiences. Therefore, this principle effectively enhances the desirability of properties located in affluent neighborhoods, reflecting their higher potential market value.

The other options don't accurately represent the principle's impact: while mixed-use developments can encourage progression, they aren't the defining impact of the principle itself. Similarly, the principle does not inherently decrease the value of lower-priced properties; rather, it enhances the value of properties based on their contextual placement.