Unrealised Gain

Unrealised gain emerges when a commercial property appreciates in value following acquisition. This gap between today's fair market value and the historical cost basis (or carrying value on the balance sheet) can result from market appreciation, capital improvements, intensified use, or favourable changes in the surrounding area.

For investors and property owners, unrealised gain matters because it:

• reflects wealth creation before any actual sale transaction
• carries tax implications depending on jurisdiction and holding period
• can serve as equity for refinancing or expansion financing
• affects the stated value of the real estate portfolio in financial reporting