Which principle of value states that value is derived from the expected future benefits?

The principle of value that states value is derived from the expected future benefits is anticipation. This principle emphasizes that the current value of a property is based on the potential future income or benefits that an investor and owner expects to receive from that property over time. Therefore, when determining value, investors will consider factors such as future rents, appreciation, and other financial benefits that may arise.

In real estate, the anticipation of future benefits can significantly influence an investor's decision-making process, as properties that are expected to generate higher future returns may command higher prices today. This principle underlines the importance of looking forward in investment analysis, making it a foundational concept in real estate valuation.