21 Adverse Factors Which Reduce the Value of Land or Property

There is no mathematical formula by which the market value of the land can be ascertained. The determination of the market value involves a little amount of guess work which is of quasi-scientific nature. Generally, the market value is based on the sale price of the very property under consideration or by comparing the land whose market value is determined with the instances of sales of similar lands in a similar neighbourhood.

Factors Reduce the Value of Land
Courtesy - Pexels

Each plot of land has great influence on the use on which the land is put depending upon the supply and demand in a particular locality. The market value of the land is governed by so many factors which include its location, situation, size and shape, type of locality. There are however certain adverse factors which tend to lower the value of land. These are the factors which reduce the value of the land in spite of other things being favourable.

Also Read: 29 Factors that can Evolve your Land Value!

01. Situated in communally sensitive and congested areas with high population density.

02. Situated in flood prone low-lying area, which gets submerged during monsoon storms, flood.

03. Situated near obnoxious industries or places of heavy traffics like railway station, airport, market etc.

04. Situated near High tension electrical lines requiring huge margins to be left for construction

05. Situated near slaughter house, cemetery, graveyard, funeral homes etc.

06. Property in acquisition under Town Planning Scheme or development plan or land acquisition for any other public purpose.

07. Publicly known disputes among co-owners / members of the family.

08. Tenanted property with tenants in possession of the property since many years.

09. Unauthorised possession by occupants over the property.

10. Noise polluted areas like busy railway lines, theatres, bus terminus, marriage halls etc.

11. Vyaghra mukhi plots (for those who believe in such sentiments). It is the plot of land the width of which is broader in front and narrow at the back end.

12. Non-availability of basic services like water, drainage, road, electricity.

13. When situated adjacent to highways, railways etc., where much of the land has to be left open as margin and where no construction is permitted.

14. Where there are legal restrictions on carrying out either full or part construction, like no. of stories which can be built etc. e.g. certain authority prohibits construction of more than G+1 or G+2 houses.

15. Restriction on ground coverage i.e. says not exceeding 10% or 20% of land area.

16. Situated near slums

17. Situated in areas where there is high crime prevalence rate.

18. Sloping, low-lying or unstable terrain prone to landslides

19. Poor soil which may increase the cost of foundations, black cotton, marshy, reclaimed soils etc.

20. Soils prone to liquefaction during an earthquake, particularly those having N<10.

21. Where there is restrictive covenants like a right of way, easement rights etc., of others.

Also Read: 

3 Major Factors that can Evolve your House Value!
29 Factors that can Evolve your Land Value!






Best Home Designs

Showcase your Best Designs

Material Exhibition

Explore the world of materials.
Exhibit your Brands/Products.

More From Topics

Use below filters for find specific topics