Final answer:
The concept described in the question is true. It is known as the "halo effect," where the value of a lesser property is enhanced if it is surrounded by more expensive properties.
Step-by-step explanation:
The concept described in the question is true. It is known as the "halo effect." The halo effect is when the value of a lesser property is perceived to be enhanced if it is surrounded by more expensive properties. This is because the presence of the more expensive properties creates a positive perception and increases the desirability of the area.
For example, if there is a small house located in a neighborhood with luxurious mansions, the value of the small house may be perceived to be higher than if it were located in an area with lower-end houses.
This concept is often observed in real estate, where properties in desirable neighborhoods tend to have higher values even if the individual property itself may not possess exceptional features.