Skip to main content
Daniel Kelley
Junior Civil Engineer
Asked a question 2 years ago

Which is the Most Suitable Method for Valuation of Building?

How to do valuation of a single storey building in Kerala. Which is the most suitable method to be adopted? The factors or the things to be in hand before doing valuation?

Where am I?

In TheConstructor you can ask and answer questions and share your experience with others!

Wilma Caldwell
Architectural technologist

The valuation method is depends on the purpose. An income generating property like hotels, cinemas, theatres etc. shall be valued profit method. For ordinary buildings, the detailed estimation method is considered as most accurate where as cost approach (adopting replacement value considering the depreciation) is prefered by most of the financial institutions like banks.Β 

To calculate the depreciation, there are a few methods like straight line method, Constant Percentage method, Written Down Method etc. In India, Market approach is difficult due to reliable comparables are difficult to find out.

The most popular of the property valuation methods is the sales comparison approach. Also known as the market data or comparable sales approach, this method is mostly used for land and residential real estate, especially single-family homes.