The principle of progression suggests the impact of high-quality neighboring properties on what?

The principle of progression indicates that a lower-quality property will generally appreciate in value when it is situated near higher-quality properties. This principle operates under the assumption that the desirability and marketability of properties are influenced by their surroundings; thus, good-quality neighboring properties can enhance the value of poorer-quality properties. When better properties are nearby, they create a more appealing environment and can lift the perceived value of less desirable ones, leading to their appreciation.

In contrast, high-quality neighboring properties do not typically lead to a depreciation of values for residential properties, nor do they directly increase sales volumes in a way that would make other choices seem fitting. The focus is on how lower-quality properties benefit from the proximity of higher-quality ones, making the relationship and positive impact on the value of these lower-quality properties the primary consideration of the principle of progression.