Upside Potential

Definition of "Upside potential"

An approximation of the possible appreciation of value in real estate. One would consider several factors in evaluating the upside potential in the value of real estate, including location, amenities, and potential increase in rental income. The opposite of upside potential is downside risk, which is an approximation of the possible comparative decline in value of a property. Real estate investors always evaluate individual properties in terms of the upside potential compared to the downside risk.

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