VALUING A VACANT LAND HAVING N.A. POTENTIAL

VALUING A VACANT LAND HAVING N.A. POTENTIAL IN NEAR FUTURE

AUTHOR: Er. ALHAD DESHPANDE

INTRODUCTION;

We valuers often come across such situation, where we are asked to value a large parcel of land in acres or hectors, which is located in “residential-yellow zone”, with development of houses, apartment schemes all around. Such situation is quite common now a days, because all over India, infrastructure developments are going on at large like new highways, fly overs, new railway routes, bridges, dams etc. So demand for housing colonies, apartments is also increasing day by day.

In such developing scenario, it is of much importance to keep following points into mind, while valuing such land near fastly developing township.

1] Zone verification is must , such land must be in yellow – residential zone, then approach road to said land and its width, Size, shape, frontage, location, demand, availability factors regarding such plot/land.

2] Construction rules and guidelines with new udpcr amendments.

3] Hypothetical layout of plots of various sizes with highest and best use [HABU]

4]Hypothetical layout of row houses/flats of various sizes with highest and best use [HABU]

5] Restriction on uses if any like nearness to airport, any archaeological norms like restricted building heights, environmental issues like any industry related pollution nearby etc.

5] Class and neighbourhood developed nearby, i.e. if low income group colonies are nearby, potential to development is restricted as HIG class customers/people try to search different options other than this. This happens mostly in case of an adjacent village to a town, where large housing colonies of workers develop all around that village and land to be valued is adjacent to such colony.

Let me illustrate this with an example!

Suppose we have to value a land parcel of say 3 acres =12000 sqmt. in a town where apartment schemes, bungalows are already developing adjacent, so will arrange data in following manner

1] Zone verification – This is verified from town planning office by demanding a “part plan with colour code and use” of said gut no. of land, suppose it comes in residential yellow zone.

2] Size and shape of land – This is verified by studying link documents like govt. land measurement sheet, dimensions if any appearing on sale deed etc. , accordingly boundaries and approach roads/road width are also confirmed.

Land dimension = [80×150] m. =12000 sqmt. , which means it’s a rectangular table land having plain level and width depth ration is also less than 2 , which is beneficial for plotting layout as well as group housing scheme, with excellent frontage.

3] Data collected from site visit;

Plots sold nearby ranging from Rs. 1000 to 30000 /sqmt., according to front road width ,corner locations , proper frontage etc. , which means plots of 12/15/18m. road will be commercial plots with high value and other plots inside will be residential one on 7.5/9m. wide road widths , having lower value.

SHOPS sold nearby ranging from Rs. 70000 to 80000 /sqmt.According to front road width, corner locations, proper frontage etc. , which means plots of 12/15/18m. Road will be commercial SHOPS with high value and other FLATS/row houses inside will be residential one on 7.5/9m. Wide road widths, having lower value in the range of Rs. 3000-40000/sqmt.

4] Analysis of the data collected;

[a] Hypothetical plotting layout in accordance with town planning norms ;

Gross land area = 12000 sqmt. [+]

Area under roads = 3000 sqmt. [-]

Area under open spaces = 1200 sqmt. [-]

Area under amenity space =600 sqmt.

Net area under plots = 7800 sqmt. , amenity area is supposed to be developed like shopping , daily needs, swimming pool etc., so same is not deducted from gross land area to get net area under plotting.

So said 7800 sqmt. Net plotting area will be divided in various plot sizes ranging from 150-500 sqmt.

Suppose there will be 500 sqmt. X 4 no.s = 2000 sqmt. Commercial plots @Rs. 30000/sqmt. =Rs. 6 cr.

253 sqmt. X 15no.s = 3795 sqmt. Say 4000 sqmt. Approx.. Residential plots @Rs. 15000/sqmt.

=Rs. 6 cr.

100 sqmt. X 20no.s = 2000 sqmt. Residential plots @Rs. 10000/sqmt. =Rs. 2 cr.

Cost of amenity plot with restricted FSI =Rs. 15000/- [X] 600 SQMT. = Rs. 0.9 cr.

TOTAL PLOTS IF SOLD BECOMES = Rs. 11.90/- cr. [+] less development expenses for various land conversion permissions from HON. COLLECTOR, TOWN PLANNING OFFICE etc., internal roads , infrastructure like streetlights, water provisions, drainages etc. will be around Rs. 3000/sqmt. Of net plotting area i.e. Rs. 4000/- [x] 7800 sqmt. = Rs. 3.12 cr. [-]

So net value becomes = Rs. 11.90 cr.[-]Rs. 3.12 cr.= Rs. 8.78 cr.

So same land can be valued at Rs. 8.78 cr. Divided by 12000sqmt. Gross area = Rs. 7316/sqmt.

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