Factors that affecting property value in india

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Factors That Affecting Property Value In India
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• A property valuation is a measure that investors
  in real estate use to determine a property's
  value.
• Investors can carry out property valuations using
  relevant property and market data, authorized
  appraisers, and real estate brokers with a BPO
  (broker opinion of value).

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Property Valuation In India
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General Factors Affecting Property Value

• You've probably heard the saying that "real
  estate is all about location, location,
  location." That's totally true.
• But position is only one of the seven general
  factors influencing the value of a property

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Property Size and Floor Plan

• The most common metric used to value residential
  real estate is the price per square foot.
• It's crucial because even though you can still
  use financial estimates such as cap rate and ROI
  to measure the property's revenue-producing
  potential, the exit strategy may involve selling
  to an occupant of the owner and not another
  investor.

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• The number of bedrooms, bathrooms, and the
  general floor plan of the property all influence
  the value, in addition to the square footage of
  the building.
• Just because a house is bigger doesn't
  necessarily mean it gives an investor a better
  value.
• That's because the house's layout should be
  compatible with the demand and the target renter.

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Improvements made to the estate

• Single-family rentals where improvements have
  already been made by the property owner can be a
  great deal for buyers.
• That's because very few adjustments, if any, lift
  the value of the property by the same amount as
  the money spent on the improvement.

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The Property Condition

• Deferred maintenance items such as a roof or
  heating system that needs to be replaced or an
  outdated floor plan decrease the value of the
  property due to the money that will be required
  for upgrading soon.

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The Property Age

• New properties typically have higher values than
  older ones because, in the near future, less
  regular maintenance and capital improvements are
  required.

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Conditions for the Market

• Property prices would grow in a seller's market,
  where there are more buyers than sellers, due to
  an imbalance between supply and demand.

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Neighborhood Properties

• Areas with a large number of vacancies and
  listings, crime and illegal activity, or a
  generally decreasing neighbourhood may cause
  landlords to decrease rents to attract tenants.
• Both rental income and NOI are declining, likely
  creating negative cash flow.
• On the other hand, if they're near schools, job
  districts, and facilities like shopping, dining
  out, and entertainment, property values would
  normally be higher.
• Due to improved rental demand, rent growth is
  higher.

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Property Location

• Location factor influencing the value of property
  include property and rental tax rates, market
  rental regulation, population and employment
  growth, and whether the region is vulnerable to
  natural disasters or seasonal weather that may
  make renting more difficult at certain periods of
  the year.

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