Valuation of apartment

Q: Hi how to calculate value of my property 20 years old apartment 2 BHK

Uday Laxmikaant Sakkhare, Apartment Resident

11th November 2016

Property Selling in Sunshine Park, Balewadi, Pune

valuation of properties

valuation of a flat

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Replies (3)

Thsnka for comments My basic question is My 2 BHK Flat is 86 m2Ready reckoner rate per m2 is 62000 INR so value is 5332000 INR but my apartment is 20 years old in this case how to calculate depreciation factor and what should be govt valuation in this case??

Uday Laxmikaant Sakkhare, Apartment Resident

18th November 2016

Comment

Hi Uday!!!
According to me, once a land has been made into flats, the value of the land per se is lost. We would value the flat based on the current market price of a new flat.

Deepankar Godbole, Mumbai

18th November 2016

Comment

HI Uday,
In case of an independent house, the value of the house is sum of the value of the land and construction cost of the building.

While the value of the land needs to be benchmarked to the market price, the value of the building depends upon its age.

Vatsa Suman, Pune

18th November 2016

Comment

You are right Vatsa.....In case of an independent house, the total useful age is estimated to be about 60 years. Suppose you are selling it after 20 years of construction, selling price of the building minus depreciation is arrived at by this simple formula- Number of years after construction/ Total (useful) age of the building. In Karthikeyan’s case it is 20/60 = 1/3. Therefore, the remainder of the useful age is the price you can ask for the building component.

To this building price, add the price of land arrived at through market benchmarking to get the total price for the house.

Sneha Ambedkar, Pune

18th November 2016