An investment property is a type of property (land or a building—or part of a building—or both) that is held (by the owner or by the lessee under a finance lease) for the sole purpose of earning rentals or for capital appreciation (increase in value over time) or both, rather than for an entity’s own use in the production or supply of goods or services or for administrative purposes or for the purpose of sale (held for sale) in the ordinary course of business.

The main examples of investment property include:

• Land held for long-term capital appreciation rather than for short-term sale in the ordinary course of business.
• Land held for a currently undetermined future use (if an entity has not determined that it will use the land as owner-occupied property or for short-term sale in the ordinary course of business, the land is treated as held for capital appreciation.)
• A building that is vacant but is held to be leased out under an operating lease (or more.)
• A building owned by the entity (or held by the entity under a finance lease) and leased out under an operating lease (or more.)
• Property that is currently constructed or developed for future use as investment property.