CAN TWO ADJACENT BUILDINGS HAVE THE SAME VALUATION

KNOWLEDGE BANK FROM B KANAGA SABAPATHY

LET KNOWLEDGE SPREAD

Message from B. K. sir 22.03.2023

Question :

Two buildings of same area & FSI are located adjacent in a busy commercial road. They are 3 storied. Both are tenanted. Whether I can certify the same market value for both buildings?

Opinion :

1. Can be same. Need not be the same.

2. Building A : Tenanted to 3 different banks or Multi National Companies.

Building B : Ground floor is rented out to a private office.
First floor is rented out to 5 different professionals.
Second floor is let out for residential use.

In this case, Building A may enjoy more market value.

3. If the second building’s age more, then the value of the second building may be less.

4. If the first building is having major violation, then the value of the first building may be less.

5. A litigated property may be valued less.

6. The corner building may enjoy a better value.

7. Therefore, depending upon the conditions prevailing, the market value may vary.

8. Remember, there is no absolute in valuation.

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With best wishes,

B. KANAGA SABAPATHY
bkvaluer@gmail.com
www.bkanagasabapathy.com

About the Author:-

Mr. B. Kanaga Sabapathy born in 1951, is a Civil Engineer who belongs to the 1972 batch of Regional Engineering College, Tiruchirappalli in Tamilnadu.
He is a Registered valuer of the Central Board of Direct Taxes, a Professional Engineer and also a Chartered engineer. Valuation is his main profession..
He was the National Vice-President of the Institution of Valuers (India) for 11 terms.
He is a regular contributor of articles in the Indian Valuer Journal from the year 1985. His articles especially his regular column “Questions & Opinions” are very popular among the practising valuers in India.
His book “Guidelines on Valuation for Banks” (2002) is used to be referred by many banks. The valuation formats designed by him were accepted and adopted as the formats by many banks in the country.
His son K. Arun and daughter B.K. Aruna are also approved valuers and they also contribute articles to the Indian valuer journal.
His guru: Mr. C.H. Gopinatha Rao, Chennai.
His mentor: Mr. R.K. Gandhi, Mumbai.
His role model: Mr. S. Rajaratnam, Chennai.
His best students: Thousands of valuers in the country