aufwerten
to upgrade
To increase the value, quality, or reputation of something or someone.
Durch die Renovierung wurde die Wohnung deutlich aufgewertet.
The renovation significantly upgraded the apartment.

to upgrade / revalue
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to upgrade
To increase the value, quality, or reputation of something or someone.
Durch die Renovierung wurde die Wohnung deutlich aufgewertet.
The renovation significantly upgraded the apartment.

'Aufwerten' (to upgrade / revalue) is a separable verb. The prefix 'auf' separates from the verb in a main clause and goes at the end.
Ein neuer Anstrich wertet das Zimmer sofort auf.
A new coat of paint immediately upgrades the room.
The word consists of the prefix 'auf' (in the sense of 'upward') and the verb 'werten' (to determine a value). So the meaning is literally to increase the value of something.
Man kann einen einfachen Salat mit guten Zutaten stark aufwerten.
You can greatly upgrade a simple salad with good ingredients.
In general usage, people often describe what something is upgraded by. For this, the preposition 'durch' (through/by) is used. Typical objects are 'Wohnung' (apartment), 'Stadtteil' (district/neighborhood), or 'Image' (image).
Der Stadtteil wurde durch neue Parks und Cafés aufgewertet.
The neighborhood was upgraded by new parks and cafés.
This meaning is specific to the field of economics and finance. You can recognize it from the context when currencies, central banks, or the foreign exchange market are being discussed.
Die Nationalbank könnte die Währung aufwerten, um die Inflation zu bekämpfen.
The national bank could revalue the currency in order to fight inflation.
to increase
'erhöhen' and 'aufwerten' can both mean that something becomes better or more valuable. 'erhöhen' is more general and works well with numbers, quantities, prices, temperatures, or levels. 'aufwerten' tends to emphasize that the quality, value, or reputation of something increases. So, for example, you increase a price, but you upgrade a room, a product, or a city district if it thereby becomes nicer, better, or more respected.

Neue Pflanzen und bessere Lampen werten den Eingangsbereich deutlich auf.
New plants and better lamps significantly upgrade the entrance area.
Ich erhöhe den Betrag, damit das Angebot realistischer ist.
I am increasing the amount so that the offer is more realistic.