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The market value of the flat is governed by so many factors which include its location, situation, size and shape, type of locality. It is also basically governed by the supply and demand in a particular locality.
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The value of flat is sum together if the value of both building and land attached to it. You can never separate either of them. However, the cost of building will be decided on a pro-rata basis to all the flats. Unless both are perfectly matched and in tune, the value will never increase. It may happen that your building is excellently designed, has an attractive look, has best finishes, but if it is located in an area which is not considered good or the plot has basic discrepancies, the flat will loose its value and even it may nor fetch its basic cost or cost of replacement as on date.
The value of flats in multi-storeyed buildings depends on many factors. The owner’s interest with respect to title needs close scrutiny. While most of the multi-storeyed residential complexes are co-operative societies, some may be on a co-ownership basis. Here over and above the specifications of the flat concerned, the common amenities like a staircase, common passages, parking facilities, underground and overhead water tank, lift, generator, common TV antenna, common terrace lifts have to be considered.
The fact that the land, as well as all the above amenities, are jointly owned by all the flat holders has to be taken into consideration. The measures adopted by the society for maintenance of the building and its maintenance charges per month also require consideration.
Hence the value of flat will be governed by 2 factors:
01. To know more about the value of land in details.
Must Read: Factor Affecting the Value of Land.
02. Factor affecting the value of building / flat, which are described herein.
Factors affecting the value of flat:
01. Architectural Aspects:
- General light, air and ventilation in a particular flat : It may vary from flat to flat and from floor to floor.
- Carpet area efficiency of the flat, with respect to it’s built up or super built up area.
- Overall look, aesthetics from all four sides
- Ornamental and decorative features of the building as a whole
- Functional hierarchy within flat
- Type and location of staircase, its width, height or risers (whether more than 6” – 15 cm)
- Critical dimension like Height of balcony and stair railings, a width of doors, passages etc.
- No. of storey’s of the apartment building
- The floor on which the flat is situated
02. Structural Details:
- Type of construction whether RCC framed structure or load bearing or mixed etc.
- Nature of structure, high rise / low rise, podium / tower, a location of expansion joints, structural framing plan, location of shear walls if any, provision of stilt floor etc.
- Horizontal and vertical symmetry from seismic consideration.
- The quality of finishes like flooring, painting, doors, windows, toilets etc.
- Quality and type of finishes of water supply, sanitary, electrical fixtures, door / window and its hardware’s
- Whether the finishes of flooring, bathroom, painting, doors etc., are as per the need of the house. Do they look outdated or out of time?
- Quality of construction material, workmanship and specifications of materials used
- The total area of flat, its carpet area and super built-up area. To understand difficulties between Carpet area, super built up are Click here.
- Sizes of different rooms, No. of rooms, room with attached toilet, balconies. No. of bedrooms, other rooms like puja room, servants’ quarters, store room, wash for kitchen and drying area for clothes etc., and whether they balance your need v/s budget.
- Whether 24 x 7 water is available, a size of underground and overhead water tanks, bore well, pumps etc.
- Parking facilities available including covered parking, garage and cost of parking if charged extra.
- Compound wall, its type of construction, height, gate etc.
- Landscaping around the building, garden, greenery etc.
- Whether there is “inbuilt” furniture like cupboards, kitchen racks, Shutters over loft in flat etc.
- Is sewage disposal to a public sewer or to a septic tank and soak pit?
- Whether common amenities exists in the society / apartment building like sports room, common dish antenna security, gymnasium, meeting hall, swimming pool, children garden, generators etc.
- A total number of flats in the building as well as No. of flats on each floor. Whether there are too many flats in a building or it is a small one.
- No. of stairs, No. of lifts and staircase with respect to No. of flats per floor.
05. General Condition and maintenance:
- Class of people staying in the apartment
- Transfer fee charged by the society during a second or subsequent sale of flat.
- Whether all persons are paying annual service / maintenance charges regularly?
- Minimum capital repairs required if any
- Major additions / alterations carried out, if any.
- The condition of the flat and maintenance carried out periodically.
- Whether the apartment building has undergone any major repairs?
- Whether there is any efflorescence, termite effect etc.
- Whether there are any leakages from a roof, toilets, external walls or dampness in walls, roof etc.
- Structural audit of the building with respect to the settlement of foundations, cracks in walls, RCC elements like slabs, beams, columns etc., the onset of corrosion in RCC elements.
06. Age and future life:
- Age of the flat / Year in which construction was carried out
- Future estimated the life of the building.
- Whether the flat is facing the front side or the rear side, roadside or other good attractive view like garden, lake etc.
- Whether the flat is on windward side or leeward side?
- Its original cost of construction
- Services available or absent, fully, partially
- Who was the original builder contractor who built it and developed it? Their market status regarding their quality of work, integrity etc.
- Whether all the flats are occupied or not?
- Whether it is a registered society? Or association of persons or a Pvt. Ltd. Company?
- Balance FSI if any and who has the right to use it?
- Hierarchy of flats i.e. whether all flats are of equal type i.e. 3 BHK, 2 BHK, 1BHK or mix of all. If they are a mix of all, the background of people living varies to a great extent and creates problems as a financial, economic and social background of all are different, which leads to a difference of opinion leading to a lack of harmony.