Rules to Calculate Government Valuation of Flat Property
Calculation of Valuation of Property
(For Residential Flats ONLY)
Important Points
Introduction –
While buying a Property, calculating the exact Valuation of the Property is very important, as the Stamp Duty and Registration Fee is applicable on the consideration price decided by the parties or the Valuation of the Property (as per Government ready reckoner rate), whichever is higher.
Factors in Calculation –
While calculating the Valuation of the Property, the following things shall be taken into consideration-
1. Government Ready-Reckoner Rate –
For calculating the valuation of the property, the first step will be to obtain Government ready-reckoner rate. These rates are also available on the official website of the Government of Maharashtra (click here to know more).
2. Built-up Area –
The rates provided in the Government ready-reckoner are for the built-up areas. Therefore, it is required to consider the built-up area while calculation the valuation of the property. In case the built-up area is not provided in the Deed/Index II, it is essential to ascertain the built-up area by using the below formula:
‘Built-up Area = Carpet Area x 1.2’
3. The floor on which property is situated –
It is important to ascertain the exact floor on which the property is situated, since while calculation of the Valuation, it is required to consider the ‘Raise’ component in the ready-reckoner rate as per the floor of the building on which the said property is situated. Generally, the floor is mentioned in the Deed/ Index II. The raise in the valuation shall be considered as per the below table:
(Applicable to flat situated in a building with Lift Facility)
| Sr. No. | Floor of the Building | Raise in the ready-reckoner rate |
| 1. | Stilt Floor or Ground Floor UPTO 04th Floor | As per ready-reckoner rate |
| 2. | 05th Floor UPTO 10th Floor | 05% |
| 3. | 10th Floor UPTO 20th Floor | 10% |
| 4. | 20th Floor UPTO 30th Floor | 15% |
| 5. | 30th Floor and above | 20% |
4. Depreciation –
In case of ascertaining the valuation of the properties which are older than 02 years, the respective percentage of the ready reckoner value is required to be deducted. While determining the age of the property, the Occupancy Certificate or Completion Certificate issued by the concerned Government Office shall be looked into. In case the said Certificates are not available, other information such as Electricity Connection date, etc. can be looked into. Please find below the Age-wise depreciation rates prescribed:
| Age of the Property (In Years) | Percentage of value after deduction of depreciation | |
| R.C.C./Pakka Construction | Kaccha Construction | |
| 0 to 2 | 100% | 100% |
| More than 2 upto 5 | 95% | 95% |
| More than 5 upto 10 | 90% | 85% |
| More than 10 upto 20 | 80% | 75% |
| More than 20 upto 30 | 70% | 60% |
| More than 30 upto 40 | 60% | 45% |
| More than 40 upto 50 | 50% | 30% |
| More than 50 upto 60 | 40% | 20% |
| More than 60 | 30% | 15% |
5. Parking Area –
Parking is also one of the important components while calculating the valuation of the property. The Parking area allotted with the flat is required to be included in the property valuation. In case of covered parking, 25% of the ready reckoner value shall be multiplied by the area and in case of open parking 40% of the ready reckoner value (for land) shall be multiplied by the area.
6. Terrace Area –
The Terrace area allotted along with the flat is also required to be included in the calculation of the property valuation. In case of Terrace is adjacent to the flat, 40% of the ready reckoner value shall be multiplied by the area and in case the Terrace is above the respective flat, then 25% of the ready reckoner value shall be multiplied by the area.
7. Garden Area –
In case any rights in the land adjacent to flat on the ground/stilt floor given along with the flat, for gardening, parking, etc. then 40% of the ready reckoner value shall be multiplied by the area and be included in the valuation of the property.
Illustration for calculation total valuation of the property:
Description of the Property:
- Total Built-up Area – 900 Square Feet / 83.61 Square Metres.
- Balcony/Terrace – 200 Square Feet / 18.58 Square Metres.
- Open Parking – 100 Square Feet / 9.29 Square Metres.
- Floor Number – 5th Floor.
- Lift – Yes.
- Age of Property – 21 to 30 years.
Ready Reckoner Rates for the above property:
- Residential – 78,630/- per Square Metre.
- Open Land – 24,580/- per Square Metre.
Calculation of Valuation of the above property will as follows:
A. Firstly, apply the depreciation to the Ready Reckoner value.
= (Ready Reckoner Rate x Depreciation percentage) x Raise as per floor
= (78630 x (70 / 100)) x 105 / 100
= 57,793.05
We have got 57,793.05/- per Square Metre value for Flat
B. Thereafter, calculate Flat Valuation.
= Value arrived in A para above x Area of Flat
= 57793.05 x 83.61
= 48,32,076.91
C. Valuation of Open Parking.
= Area of parking x (Value arrived in A para above x Parking percentage)
= 9.29 x (24580 x 40 / 100)
= 9.29 x 9832
= 91,339.28
D. Valuation of Terrace.
= Area of terrace x (Value arrived in A para above x Terrace percentage)
= 18.58 x (57793.05 x 40 / 100)
= 18.58 x 23117.22
= 4,29,517.94
TOTAL VALUATION OF THE PROPERTY
= B + C + D
= 48,32,076.91 + 91,339.28 + 4,29,517.94
= 53,52,934.13