On September 2nd , 2024, A. Madhusudan, a Government Registered Valuer specializing in immovable property, issued a detailed valuation certificate for M/s. Heera Retail (Hyd) Pvt Ltd. The valuation, performed on behalf of the company and represented by its CEO, Dr Nowhera Shaik, concerned to open plots located in Tolichowki, Hyderabad. This article provides depth overview of the valuation process & valueable information about the piece of land.
Land Overview
The property is in Town Survey Nos. 12, 13, 14, & 15/1, Block M, Ward No. 13, Tolichowki, Hyderabad, Telangana – 500 008. Mentioned area is very well connected, approximately 1 kilometer from the Tolichowki junction and 0.8 kilometers from the road towards Golconda Fort. The site is situated at a place on proposed 80′ road taking towards to 7 Tombs, big advantage due to its ease of access.
The total land area under view is 33,060.15 square yards (27,642.50 square meters). This property is classified as residential and urban, making it ease for various types of development. The land is level and currently selected for non-residential use, but it holds potential for future commercial & residential projects. Also , many key documents were reviewed such as Sale Deed No. 5479 of 2015 , Demarcation Report & Various utility bills.
The Method Of Valuation
The valuation is based on current market rates, which always vary according to the location and accessibility to major roads. For inside locations, rates range from Rs. 1.52 lakh per square yard, while main roads rates are up to Rs. 3.04 lakh per square yard. The minmum rate for the property was to be Rs. 2.28 lakh per square yard. The valuation criteria was done by A. Madhusudan, a registered valuer with the registration number S66/CCIT-1/Hyderabad/2014. The fair market value was estimated using Sale Deed No. 5479 of 2015, current selling rates, and a demarcation report of the property.
Exact Details Of Valuation
On the basis of Sale Deed No. 5479 of 2015, a Demarcation Report, and current selling rates, on fair market value of the property has been rated at Rs. 75,37,71,420 as of August 26, 2024. This rating clearly tells the high demand and strategic positioning of the land.
When we evaluate in-depth analysis, the valuation report specifies that the realizable value of the land is higher, amounting to Rs. 67,83,94,2780 (Rupees Six Hundred Seventy-Eight Crore Thirty-Nine Lakh Forty-Two Thousand Seven Hundred Eighty Only). This amount considers an adjustment factor of 90% from the fair market value, telling potential for value realization in a market context.
What Does Market Analysis Says ?
Offcourse the valuation process sees current market rates, which vary depending on the location in the city. For interior locations, the rate is approximately Rs. 1.52 lakh per square yard, but for main roads, it can go up to Rs. 3.04 lakh per square yard. The average rate for the property has been calculated at Rs. 2.28 lakh per square yard. Transactions have shown values reaching up to Rs. 3.10 lakh per square yard on main roads. The valuation adopted an average rate of Rs. 2.28 lakh per square yard, leading to a total land value of Rs. 753,77,14,200 (Rupees Seven Hundred Fifty-Three Crore Seventy-Seven Lakh Fourteen Thousand Two Hundred Only).
Characteristics of Property
The open plots are classified into residential and urban, in a highly demandable area. The land is level and ready for development, though it is for non-residential use. The property does not have any reported encroachments or final agreements. This traits of the property contribute positively to its market valuation subsequently.
Potential of Development
The land offers potential for both commercial and residential development. For apartments, the land rate is calculated at Rs. 6,333 per square foot with construction costs estimated at Rs. 2,500 per square foot. For villas, the land rate is Rs. 20,267 per square foot with construction costs of Rs. 3,500 per square foot. Both development options are based on the current market conditions and the strategic location of the property.
Recommendations and Conditions
Several suggestion have been made to ensure the validity and successful execution of any development projects on the property. These include verifying legality, conducting a physical land survey, and obtaining necessary certifications. The client is advised to check for any potential legal issues or encroachments, confirm the accuracy of land measurements, and ensure unobstructed road access.
The valuation report also tells the importance of verifying allowable, legal, and technical clearances. Conditions for the validity of this valuation include confirming proper land ownership, ensuring there are no impacts from government purchase aur any investment or road widening, and verifying Urban Land Ceiling (ULC) clearance if needed. A physical land survey and obtaining a land sketch from the Revenue Department are also very important.
Conclusion
The valuation of the vacant land in Tolichowki, Hyderabad, has been surveyed, considering current market rates and the land’s potential for development. The current market value of the property is estimated at Rs. 753,77,14,200 (Rupees Seven Hundred Fifty-Three Crore Seventy-Seven Lakh Fourteen Thousand Two Hundred Only). However, the final sale figure may fluctuate based on demand, supply, economic factors, and potential factors.
The client is further encouraged to take up further verification of legal titles, land measurements, and necessary clearances to ensure a smooth transaction process in the property .