Property Valuation Methods in India
The property valuation methods here in India are as varied as the property laws in each state. Such is the difference that you may have bought a certain property at a certain price. However when you are going to register the property, you find that the government authorities are quoting an entirely different amount. A perfect example of this was in Garia, which is a suburb of kolkata. During the year, 2007-08 property prices rose on the speculation of the Kolkata Metro Railway expanding and making its entry into Garia. However, the government rates were far less than the ones prevailing in the ground. The government rates did increase only a year later when the Metro railway did make its entry in Garia.
Such is the discrepancy that brokers and real estate agents do not pay much heed to the property valuation as per the government methods. They are more concerned about the rates that are prevailing in the market. Various factors determine the valuation of a property. Let us discuss some of these factors one at a time.
The location of the property is of prime importance. How far is the property from the market place or the centre of the city? These are some of the basic questions that you must ask yourself while you are calculating the value of the property. The reputation of the builder is very important while calculating the value of the property. The material used in the building is very important. Thus, it can be safely assumed that a top developer will always adhere to quality and never compromise with it. Thus, the valuation of a property built by a top builder will always be more.
Today real estate is slowly turning out to be a lucrative form of investment here in India. Global investors are also entering the property market here in this country. Thus, there is always a need to value property in the right way. Employing a professional property valuation company will be a step in the right direction.
The Indian property market is a highly unorganized market due to the absence of a regulator. The Insurance sector has a regulator in the form of IRDA. The Telecom sector has TRAI, while the stock markets have SEBI. Unfortunately, there is no such thing here. This makes property valuation standards extremely difficult to maintain here in India.
The Government of India has tried to make things simpler. It has introduced certain guidelines based on which the property valuation takes place. Now you will have to follow these guidelines if you want to know the official value of the property. Many websites offer you a property valuation calculator, or a property valuation estimator. You have to put the data of the property that is available and you will get to know the original value of the property. Now whether the market forces allow you to buy the property at that rate or not is a different matter altogether.
Government property valuation is important if you are going to apply for a loan based on your property. There you must be aware of the value of your property, as you will get a loan based on it. Other than that, it is the marker forces, which decide at what price can you buy or sell the property.
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