How to Determine the Actual Price of Bangalore Property

How to Determine the Actual Price of Bangalore Property

By siliconindia   |   Friday, February 6, 2015   |    3 Comments
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Bangalore: Concerning as an IT hub of India, Bangalore city is appraised as one of the most popular metros in India. The reason behind this is the rising IT sector. In the past few decades, the Bangalore realty market has seen a fabulous change. As the city offers a plenty of employment opportunities, individuals are migrating from various places to Bangalore city. The rise in migration people has augmented the residential and commercial demand in a great extent.

The buyers who dream to own a property in Silicon city is not only looking for new properties, but also considering the resale properties as they are comparatively lower than new one. While buying Bangalore property every home seeker should know how to determine the actual price to find out whether the quoted price is higher or appropriate. Usually, one to five years old resale property will be around 78-83 percent of the market value, five to ten years old will be around 63-75 percent and ten to twenty years old will be 50-67 percent of market value. These values can also be affected by many factors.

The formula which can determine the resale property value is the sum of the total value of the entire land (undivided share of land), depreciated value of facilities, amenities and building and the value of promoters profit, expenses and over heads.

The total value of UDS can be determined by multiplying the actual area of UDS and cost per sq ft value. Generally, the guideline values are considered for the cost factor but these values are much lesser than the market value. In addition, to know the actual market price in particular area one can visit real estate portals.

To find out the depreciated value of facilities, amenities and building consider the age of the property, construction cost and super built up area it mean area allocated for car parking . The current construction cost in Bangalore is Rs 1300-1400 per sq ft for residential building; again it may vary according to quality of stuff. The depreciated value can be determined by multiplying the depreciation rate and gross unit area value.

Gross unit area value = value of the self occupied portion (area *rate/sq ft *10 months) + car parking area

Roughly, the value of promoters profit expenses and overheads will be 40 percent of construction cost. Due to the rise in migrated people and residential demand in Bangalore there is a rise in construction costs. In this situation many real estate agents are planning to extract the most extreme profit. Hence, determining the actual price of residential property before buying is a prudent option to save money.

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