5 Factors That Affect Valuation of Property in India

5 Factors That Affect Valuation of Property in India

By SiliconIndia   |   Monday, June 30, 2014
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BANGALORE: The value of a property is based on different characteristics associated with it and the factors that influencing them. These influencing factors could decide the worth of the land and the interest it could invoke in the people and further determine the buying and selling of properties.

There are many factors that influence the growth thrust of the land such as pricing, market trends, demand, customization, and the state of economy. However, the instance of securing a quality property would depend on acquiring an insight on the right time for purchase of property, price acceleration, recession, and other related indicators. Read on to know the most essential factors that influence value of a property in India.


The most important factor that affects the value of the land is location. Locations can be ‘low end’ or ‘high end’. ‘Low end’ areas with no means of future development, deprived opportunity, neglected and rundown neighborhood, environmental catastrophe, and the economy level of the community would depreciate the market value regardless of the structure. Whereas ‘High end’ residential areas consisting well-developed and approved colonies, stricter security measures and a closer proximity to the commercial and market regions would provide a better pricing. Enforcing zoning and local values can protect the house values.


There is a basic physical and organizational structures needed for the operation of a society. They include housing, electricity, waste disposal, drainage, sewage, pipe-borne water, roads, health, education, telecommunications and institutional structures like police station, fire fighting stations, banks and post office. In other words, infrastructure is the large scale public services or systems and facilities of a country or region that are necessary for economic activity. The lack of proper infrastructure account to land value degradation.


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