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Is
it the right price for this property? Perhaps
this is the question that keeps on creeping in
your mind ever since you make up yourself to buy
or sell a property. Though it is quite crucial
to spot the right price for making a successful
real estate transaction, it is all the way difficult
to evaluate it. Neither any formula nor a scientific
technique is there to help you out!!! Prices quoted
by district administration are not in consonance
with the market dynamics and therefore does not
represent the actual trading price of real estate.
There is no such procedure for property evaluation
in India that developers or real estate agents
adopt to derive the current market value of a
property. So, finally, it is you who has to follow
the instincts!!! But be cautious. You might have
to pay through your nose if you treat this as
a trial and error game. Hereon, we discuss some
of those important parameters that you should
always bear in mind to reach the decent levels
of property-valuation.
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Location
profile
A lot depends on the profile of the location where
the property is situated. Market value of an apartment
or an independent house located at a residential
area near the most happening market place or office
area can be more than the segregated ones. The
same applies to the commercial locations.
Basic amenities:
Not to mention, plush green surroundings, civic
amenities like safe drinking water and systematic
drainage system is what a buyer seeks.
Good Infrastructure:
Good quality roads around and within the society
score.
Safety and Security:
People avoid locations that are closer or are
known as riot prone area. Sharp declines in the
prices are witnessed in areas where incidents
of robberies, burglary or theft are reported within
short spans of time.
Connectivity:
Good connectivity with bus depot, railway station
and airport is equally important. In fact, real
estate in vicinity to these facilities makes sound
investment proposition.
Quality Matters
Since, valuation of property is rather a process,
all the above discussed factors go hand in hand
with perception of quality. Besides the tangible
aspects of construction, you should also consider
the intangible one like the track record of builder
or developer. It’s advisable to check that
the developer has all the due permissions and
clearances from Municipal Corporation and other
government authorities like Pollution Control
Board. Maintenance surfaces up as a major woe
in the newly developed residential colonies and
even office complexes. Consequently, the value
of property in India at these locations tends
to go southwards or vice versa.
Growth Propellers
You can expect windfall gains on buying property
near the site of mega infrastructure projects.
It can be anything like metro rail, airport expansion
or internationalization, sports stadium, Special
Economic Zone (SEZ) or IT Park. However, valuation
of real estate near such sites can be tricky.
The markets may overheat and you fall prey to
speculative trends.
Expert Touch
With respect to the safety and success of your
investment, you can opt for the services of professional
surveyors who offer valuation services in real
estate. Moreover, good times are not far away.
Indian Real Estate is maturing and systems for
deriving fair property prices are in the offing.
Recently a private research firm introduced Real
Estate Sensitivity Index (RESSEX) that will act
as an instrument to gauge the impact of events
like government fiscal decisions, change in interest
rate on home loans, and other determinants, on
the prices of real estate in India.
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