Definition

A capital improvement in real estate is any permanent structure or other asset added to the property that adds to its value. In general, any value-added activity or cost to a long-term or permanent asset is one that increases its value.

Use cases, Example & Why it matters

Use cases

- Used in capital markets for disclosure, valuation, and investor communication.
- Used when interpreting securities, filings, and market indicators.

Example

- Example: Investors reference **CAPITAL IMPROVEMENT** when assessing risk/return and interpreting public disclosures.

Why it matters

- Why it matters: Improves transparency for investors and supports pricing, funding, and governance decisions.

Related terms

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