The absolute return does not take into account the intrinsic value of the property or its location or qualities, which could be mediocre. The short-term return may, however, be high. For a given amount of income, properties for absolute returns are sold with a significant reduction.
This is the best balance between an attractive return and an attractive property that is in good condition and in a good location. The outlook for appreciation is average to good. This is the type of property that we prefer.
Property for appreciation (gains) are in town, in beautiful and pleasant areas, but are purchased with a premium. For a given return, they will be more expensive. These properties are mainly sought as residential property rather than as investment property, by buyers who have no outlook for return and who are prepared to pay a higher price. These properties generate an average return but offer an attractive outlook for appreciation.
Prestige properties are attractive, well-situated, in very good condition, but expensive and generate only low returns. These are properties that retain their value and may offer a good perspective for appreciation, or are even speculative.