The building does appreciate sometimes, at least here in Germany because the increasing absurdity of bureaucracy and regulations make the same class of house more and more expensive to build. At the same time, "lower classes" of houses become outright illegal to erect, leaving only the luxury segment for new buildings. Old buildings have grandfather privilege and thus become more expensive than an equivalent new build would be, simply because you aren't allowed to build new.

And unless your property is Freehold, you don't own the land at all.

I seen plenty of land around that area for $150k or less. No doubt some land is worth $500k plenty is not anywhere near that.