If you are planning to sell your property, then the first step is to assess the value of your home. Let’s learn how to calculate the market value of land in India. There are several ways to do that:
Comparative Property Valuation MethodThis method helps you calculate the value of your property by examining the value of similar properties in that particular location. It is generally used to evaluate the worth of flats.
Development MethodAt some point, the plot’s worth might not be much but future infrastructure development could increase its worth multiple times. This method is generally used to decide the worth of apartments that are built on such plots.
For example: In Jewar, a bigha of land that was being sold for around Rs. 5,00,000 in the past now costs around Rs. 25,00,000 lakhs after the plans of building NCR’s 2nd airport there.
The Belting MethodRoad frontage is taken into consideration while calculating the value of properties using this method. The plot is divided among 3 belts to calculate the land’s real value. The 1st belt has a maximum value, the 2nd belt is valued at 75% of the 1st belt and the 3rd belt is valued at 50% of the 1st belt.
The Land and Building MethodUnder this method, the land’s value is separately evaluated and the building’s value is added to the number, to obtain the final value. You can use this method to figure out both property valuation and land valuation. For example,
To calculate the building value, first, the reconstruction cost needs to be figured out and then, adjustments should be made for depreciation.
The Guidance Value MethodSince authorities have allocated a specific guidance value to land, known as ready reckoner rate, circle rate, etc., our job to calculate the market value of land becomes easy. States have done this to levy registration charges and stamp duty on the transfer of properties.
For instance, Gurgaon’s district administration has recently announced a hike in circle rate which is sure to make a plot-based property more expensive.
You need to remember that the government-specified rates could be lower and higher than the property’s prevalent market value. So, I recommend you to check out the prevalent market rate if you want to sell your flat/plot.
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Authors Of The Question
How to calculate market value of land in India?
Neeraj
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1 Answers
3 Year
2021-08-16T16:58:57+00:00 2023-06-16T11:43:10+00:00Comment
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