What can contribute to an increase in property depreciation?

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The correct answer is C, which highlights the impact of age, wear, or outdated features of the property on its depreciation. Over time, all properties undergo physical deterioration, which is often influenced by their age. As a property ages, it may experience wear and tear, leading to necessary repairs and a decline in its overall condition. This affects perceived value and can result in financial depreciation.

Additionally, outdated features—such as older electrical systems, outdated appliances, or old roofing materials—can diminish a property's attractiveness in the real estate market. Buyers typically prefer modern amenities and features that meet current standards. Therefore, properties that fall behind in these areas are likely to see a reduction in value over time, as they become less competitive compared to newer or well-updated properties.

Other options, while relevant to property value in different contexts, do not directly contribute to depreciation in the same way. Increased demand from buyers would usually drive property values up, continuous maintenance and improvements would typically sustain or enhance property value, and local infrastructure expansion might improve desirability and subsequently increase value rather than contribute to depreciation.