Valuing Your Property in India: A Comprehensive Guide
Evaluating the proper value of a property or housing in India demands a thorough understanding of various factors and methodologies. This process involves considering several aspects such as the physical condition of the property, relevant covenants, local market conditions, and legal status. This guide will walk you through the key elements for determining the value of your property in India.
Introduction to Property Valuation in India
When valuing a property in India, it's essential to consider multiple factors. You can find useful property evaluation tools online, such as the 'hoknow' app, which uses over 22 parameters to generate a comprehensive property report. This app helps you determine the valuation of your property with greater accuracy.
Factors Influencing Property Value in India
Several factors influence the valuation of a property in India:
Location
Properties located in commercial and market areas tend to hold higher values compared to those in residential areas. In densely populated and economically vibrant cities like Mumbai, where rental properties are prevalent, the valuation can be calculated by multiplying the average monthly rent by 100 over about eight years. However, a sale may be blocked for various reasons, leading to very low valuation.
Disposable Income
In agricultural areas or regions dominated by manufacturing units, properties attract lower prices compared to those in IT hubs. This is because the disposable income of residents in these areas is generally lower, which affects the demand for and thus the value of properties.
Demand and Supply
The demand for real estate in a particular area is inversely proportional to its supply. As the supply of real estate decreases, the valuation of properties increases. Understanding the local market dynamics, including changes in demand and supply, is crucial for accurate valuation.
Amenities and Infrastructure
The value of properties with better infrastructural capabilities, such as proper electric connections, telephone lines, water, sewerage facilities, and other amenities like community centers, children's parks, swimming pools, gymnasiums, parking lots, and general stores, is higher. The presence of essential facilities and modern amenities significantly influences the property's valuation.
Infrastructure Near/In the Area
Infrastructural development plays a vital role in influencing real estate prices in India. Properties near or surrounded by roads, airports, flyovers, malls, bus terminals, and other facilities experience value escalation. Examples of such areas include Noida, Gurgaon, Pune, Hyderabad, Navi Mumbai, and Andheri-Borivili in Mumbai.
Structure of the House
The valuation of a property is also dependent on the quality and specifications of the materials used, such as the layout design, durability, and life cycle of the building. The quality and cost of construction materials, current rates of labor, frontage, and other physical attributes like roof covering, building height, foundation type, waterproofing, and plinth level also affect the property's price.
Conclusion
Evaluating the value of a property in India requires careful consideration of multiple factors. By understanding the location, disposable income, demand and supply, amenities, infrastructure, and the structure of the house, you can make an informed decision about your property's valuation.
For a detailed and accurate valuation, consider using specialized tools and professional assistance to ensure you have a comprehensive understanding of your property's worth.