Property Valuation in Delhi
Updated and Published on 6 January, 2017
The value of immoveable property has increased by leaps and bounds in the past three decades, making it crucial to understand the factors that affect their market value. The most important factors affecting the value of a property are:
1. Location of property: This is perhaps the most important factor in determining the value. A property which is having a good location will usually command a premium of 10-25% compared to other properties. Properties located in the city center, near main roads, near parks and markets, etc. generally have a higher value.
2. Type of ownership: Properties may be either leasehold or freehold. Freehold properties generally have a higher value as compared to leasehold properties.
3. Type of property: The property may be either residential, commercial, industrial, institutional etc. Commercial and industrial properties generally have more value than residential property. Further the property may be a House/Bunglow, Builder floor, DDA Flat, Society Flat / Apartment, MCD Shop, Commercial office unit, L&DO / DDA Plot etc.
4. Property Title Documents: If the title documents of a property are missing or defective in some way, the property will not be able to fetch a good market price. If the property is disputed or the subject matter of some court case, it will have a very low value.
5. Master Plan & Building Bye Laws: If a property is not in conformity with the Master Plan, Zonal Plans and Building Bye Laws, it will have a lower market value.
6. Economic, Social & Political status of people living in neighborhood: A property located in colonies where the elite families, industrialists and politicians reside have a higher value.
7. Shape of Plot: Plots that are shaped regularly tend to have a higher value than those with irregular shapes. Three side open plots have more value than two side open plots.
8. Year of construction of property : A property which is newly built or recently renovated will obviously have a higher value than an old construction.
9. Connectivity to roads and Metro etc : Properties in areas with wide roads, metro connectivity and easy access to airport, major roads will have a higher value.
Purposes for which we Provide Valuation Reports:
We provide property valuation reports for multiple purposes. The valuation may be required for the following purposes:
- Bank Loan : A valuation report may be required by the Bank for sanctioning the home loan/ loan against property based on its valuation.
- Sale / Purchase : The buyer of a property may use the report for finding out the maximum amount he can pay for the property. Similarly, the seller can find out the actual worth or fair market value of the property.
- Income Tax : The buyer or seller of a property may need to submit the valuation report for submission to the Income Tax authorities.
- Wealth Tax : The owner of the property may need to get the properties valued for computing his wealth and payment of wealth tax.
- Capital Gains Tax : The seller of a property may need to submit a valuation report of property to substantiate calculation of short term or long term capital gains tax on sale of property.
- Legal Disputes : The court may insist on a valuation in case of a legal dispute in relation to a property.
- Family Partition : The family members may need a valuation of properties to substantiate and support their claims based on their share in the joint family property that needs to be divided among them.
- Stamp Duty : The buyer or seller of a property may need the report to substantiate the property value on which the stamp duty has been paid by him to the government. Such a report may be helpful in case a document has been impounded and sent to the Collector of Stamps for recovery for deficient stamp duty as per Circle rates.
- Matrimonial case : The valuation may be required to be submitted in the court by wife to claim a share in his husband's property in case of a divorce proceedings etc.
- Insurance : The insurance company may need the report for deciding and calculating the insurance premium. It may also be needed in assessing the claim amount.
- Visa application / Immigration / Foreign Citizenship : A person may need the valuation report to show his net worth for getting Visa to foreign countries like Canada, USA, UK, Australia, UAE, Singapore, New Zealand etc.
- Auction Sale : The property may be required to be valued for setting the base price for auction sale of the property by a Bank or Financial Institution.
- Bank Guarantee : The bank may require a report of the immoveable assets and properties in case of Bank Guarantee, Overdraft Facility etc.
- Dissolution of Partnership assets : A valuation may be required in case of dissolution of a partnership firm and its assets and properties.
- Mergers, Takeovers, Foreign Collaborations and Joint Ventures : A report is often required in such transactions before the investment is made in the assets.
- Credit rating : A report of valuation may be required for assessing the credit worthiness and credit rating of a company or an individual.
- Property related cases : The valuation may be required to be submitted in the court to show the value of the disputed property.
- Registration of Property Documents : A valuation report may be required for the registration of property related documents such as Sale Deed, Gift Deed, Agreement to Sell, Partition Deed, Trust Deed etc in the sub registrar office.
- Rent & Depreciation calculation : A report may be required for calculation of rent and depreciation applicable on the assets for tax purposes.
- Jewellery, ornaments & Antiques : A report of valuation may be needed in respect of Antique items, Jewellery, precious stones and ornaments for submission with Wealth Tax / Income Tax returns or for insurance purposes.
- Court fees : The plaintiff may need to submit a valuation of the property to provide the basis on which Court fee has deposited by him for the suit.
- Land Acquisition compensation : A valuation of the land / property may be required for deciding and fixing the compensation payable to the owners for acquisition of their property.
- Property Tax / House Tax : A valuation may be needed for calculation of Property / House Tax payable to Municipal Corporation.
- Gift of property : A property valuation report may be required in case of Gift of an immoveable property by the owner to his family member, relative or friend.
Our company provides services for Valuation of Property in Delhi & NCR.
To get a Property Valuation report in Delhi, you may contact us at 8800418408.
Methods of Valuation of Property
We cannot truly know what a buyer is willing to pay for property without his telling us, and can only make a guess about the value of the property. There are three methods of valuation that are commonly used:
1. Capitalization of annual rent
2. Comparison of subject property with similar property in the area, and
3. Obtaining advice of professionals.
These are explained in more detail below.
1. Rent Capitalization Method
One can assess the value of immoveable property by trying to base it off the value of the rent that is charged and received annually by the property. However, because rent may be set too high or too low, this is often not an accurate indicator of market values. If the rent is at standard price, however, you can make a reasonable guess of the market value, This method is suitable for valuing residential properties as well as commercial properties.
2. Comparison Method
This is one of the easier and more common methods of estimating the market prices. Valuation is done by assessing the value of other similar properties in the nearby areas. It is a commonly used method and takes into account several important factors, such as the timing of the sale and the price at which adjacent properties have been sold.
3. Professional / Expert Opinion
This is one of the more accurate means of assessing a property’s market value. The valuation experts ( Category 1 / Government approved valuers) are trained and experienced in the area of property valuation and can offer better-than-normal price assessment. It is standard to give an expert enough time to thoroughly assess the situation before being prompted to make a valuation. Due to his experience and know-how, an expert can provide a reasonable estimation of the market value of a particular property.
Our company provides services for Valuation of Property in Delhi & NCR.
To get a Report of Property value in Delhi, you may contact us at 8800418408.
Disclaimer: The information contained in this website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. The use of this web site, and the sending or receipt of information does not create an attorney-client relationship. By using this website you agree that there has been no advertisement, solicitation, invitation or inducement of any sort whatsoever from us to solicit any work through this website.