5 THINGS YOU NEED TO KNOW ABOUT PROPERTY VALUATIONS
Property valuations are necessary for many reasons, which include, selling a property, investment analysis, financing of a property, home insurance, and taxation. However, for most people knowing the value of their property is the most important. Whether the property has been appreciated or not is what everyone wants to know when buying or selling a property. The value of a property depends on various factors, and we will discuss the various factors that influence property valuations in India. Here are 5 things that you need to know about property valuations.
Infrastructure Development
The surrounding area of a property is one of the most important factors that affect the valuation of a property. This means – whether or not roads are being built, the proximity to markets, malls, airports, railway stations, etc. Also, factors such as public transportation, waste disposal, green belt play an important role in property valuations. A property around Delhi, Mumbai, and Bangalore have better valuations as compared to other cities in India.
Commercial Real Estate Development
Another factor that affects property valuations is commercial real estate development. With more and more commercial buildings coming up in an area, it would mean more companies pouring in. This in return will yield more people moving in due to job prospects and also because people prefer living close by their workplace. Properties in Gurgaon, Noida, Navi Mumbai, Hyderabad, Pune, Mumbai, and South Bangalore have seen higher valuations on properties because of the huge commercial real estate development.
Availability Of Land
With the influx of people and buildings in cities like Mumbai and Delhi, land has become a very rare commodity, Property valuations largely depend on the availability of land. If the land is more scarce, the value of properties automatically rises. If there is enough land around, the property tends to appreciate slowly.
Aspect Of Disposable Income
The amount of disposable income in the hands of the people living in a locality is also a key factor in property valuations. It has been seen that a locality around an IT hub, has a higher property valuation as compared to the neighborhood around a manufacturing or agricultural hub. This can be directly related to the aspect of disposable income in the hands of the people.
Connectivity
Another factor that plays a vital role in property valuations is connectivity. Localities that are well connected with entertainment hubs, markets, and businesses have better valuations. If you compare Gurgaon and Faridabad, both are at equal distance from Delhi, but yet there is a huge gap in their valuations.
There are many other macro factors that affect property valuations.
- Valuing real estate is difficult since each property has unique features such as location, lot size, floor plan, and amenities.
- General real estate market concepts like supply and demand in a given region will certainly play into a particular property's overall value.
- Individual properties, however, must be subject to appraisal, using one of several methods, to ascertain a fair value.
These were the 5 things you needed to know about property valuations to make an informed decision.