Buying your own home can be a daunting task for many. There are generally a number of things to consider when buying land. If you buy a piece of land without looking into it, there are a lot of pros and cons. Ordinary people usually approach any broker to buy land. But those who are considering land acquisition through brokers need to know one more thing. That is, sometimes brokers will try to impose land on you at a fair price.
To avoid any speculation over the prices, the government of Kerala fixes a fair value for different categories of land based on the registration charges and stamp duty that are to be paid for the various property transactions. The fair value of the plot is also applicable in houses and flats, where there are no additional fees for construction after adjustment against depreciation.
The fair value of land shown in this site is the enhanced fair value as per Gazette notification SRO No.305/2022 dated 30/03/2022. In other words this site includes the enhanced fair value as per the Gazette notifications published till 30/03/2022.
Factors affecting the Fair Market Value of a property
Location
The location of the property is a major determinant of its value. If the property is situated in a prime area, it obtains the first estimate. Excellent location refers to the heart of the city or an area with upscale buildings and residential areas, including sprawling apartments, for example, MG Road in Bangalore and CP in Delhi. On the contrary, properties located in remote areas or outskirts are estimated at a lower value.
The site
The dimensions of the property play a significant role in its value evaluation, be it a plot, flat or independent villa. A bigger parcel of land will retain more substantial value compared to a smaller one.
Demand and supply
The demand-supply dynamics of the property, too, impact its fair value. Higher demand unmet by insufficient supply is bound to surge the fair value, whereas oversupply hinders capital appreciation. Various other factors, such as easy access to home loans, an increase in disposable income and the rural to urban migration drive demand for real estate. Hence, economic conditions trigger changes in the fair value of the property.
Difference between fair value and market value
The state government authorities decide the fair value of land or property. On the contrary, the market value of land in Kerala is determined by the marketplace that is based on the supply and demand scenario. Usually, the fair value of land is being considered for the deeds registration and stamp duty in cases the decided transaction value of land is lower than the fair value of the land. So, the fair value or consideration amount is used to calculate the registration charges and stamp duty charges in Kerala. The one that is higher is taken into consideration.