Market Value Property in Mumbai: Determining Rates and Calculation Methods

Knowing your property's market worth is crucial as it can help you make prudent investment choices. Whether you are planning to buy a new home, let an existing one on rent, add to your real estate portfolio, or calculate the possible return on investment, there are numerous benefits that one can avail by knowing their property's current value. So, to get a better idea of the market value of property in Mumbai, read on:

Factors to Consider While Evaluating the Market Value of Property

While calculating the market value of property in Mumbai, several factors come into play. These factors include:

1. Government Ready-Reckoner Rate

The initial step in determining property valuation is obtaining the Government ready-reckoner rate. These rates can be accessed through the official website of the Government of Maharashtra.

2. Built-up Area

The Government ready-reckoner rates are based on the built-up areas. Thus, it is necessary to consider the built-up area when calculating the market value of property in Mumbai. If the built-up area is not mentioned in the Deed/Index II, one can calculate it with the help of the following formula:

'Built-up Area = Carpet Area x 1.2'

3. Terrace Area

The terrace area that comes along with the flat is an essential factor to consider in property valuation calculations. If the terrace is adjacent to the apartment, the analysis involves multiplying 40% of the ready reckoner value by the terrace area. However, if the terrace is located above the respective flat, the calculation involves multiplying 25% of the ready reckoner value by the terrace area.

4. Garden Area 

The garden area associated with the flat is an essential consideration while calculating the market value of property in Mumbai. If there are any rights to the land adjacent to the flat on the ground or stilt floor, provided for gardening, parking, or other purposes, the valuation of the property should include multiplying 40% of the ready reckoner value by the area of the garden.

5. Land On Which the Property is Built

Determining the specific floor on which the property is located is crucial in property valuation calculations. This is because the "Raise" component in the ready-reckoner rate varies based on the floor of the building where the property is situated. Typically, the floor information is mentioned in the Deed/Index II.

6. Depreciation Rate

Depreciation plays a significant role in determining the valuation of properties that are older than two years. To calculate the depreciation, a certain percentage of the ready reckoner value needs to be deducted. The age of the property can be determined by referring to the Occupancy Certificate or Completion Certificate issued by the relevant Government Office. In cases where these certificates are unavailable, alternative information, such as the date of the Electricity Connection, can be considered.

Conclusion 

Whether you are buying a property or selling one, determining the market value of property in Mumbai will ensure that your transaction is both legal and transparent. We hope this information will help you calculate the worth of your property and make confident decisions.