If you want to sell a home or buy one, you must first understand the market value of property. This value tells you what a buyer will pay for a property on a normal day. It is not a guess. It is not based on emotion. It is based on facts. These facts come from the area, the flat size, the quality, and the demand.
Many people get the number wrong. They go by what neighbours say. Or they depend fully on brokers. That can lead to bad deals. If you want to stay ahead, you must learn how to calculate it yourself.
This guide will help you do that. Step by step. No confusion. Just the truth.
Begin With the Basics
The market value of property is what a buyer agrees to pay and a seller agrees to accept. This happens when both sides are not in a rush. It is the normal deal price. Not a forced sale. Not a bank auction.
This number helps in many ways. It helps when you apply for a home loan. It helps during resale. It helps with taxes. It also protects you from fraud.
Why Circle Rate Is Not Enough
The government gives a basic rate for every area. This is called the circle rate. It is the minimum price for registration. But this rate does not always match the real market value. In many cases, the actual deal happens above the circle rate. Sometimes below.
Let us say the circle rate in Chakan is ₹4,300 per sq. ft. But homes in Dwarka by Naiknavare are selling at ₹4,800 per sq. ft. That means the real market value is more. So always check both.
Look at Recent Deals Around You
Check what similar flats have sold for in your area. If you have a 2 BHK, look at other 2 BHK flats. Make sure the area and condition are close to yours. Look at at least three recent deals. That gives you a fair idea.
Let us say you own a 2 BHK in Aranya by Naiknavare. It is 850 sq. ft. You find three flats nearby that sold at:
- ₹5,700 per sq. ft
- ₹5,800 per sq. ft
- ₹6,000 per sq. ft
You now have your average price.
Here is the Formula
Market Value of Property = Average Price per Sq. Ft × Area + Adjustments for Features
This is simple. First, take the average rate. Then multiply by your flat size. After that, adjust for extra things like a better view or a premium floor.
Example 1 –
Your flat is 850 sq. ft.
Average rate is ₹5,800 per sq. ft.
So, ₹5,800 × 850 = ₹49,30,000
Now add 5 percent because your flat faces a forest and is Vastu compliant.
5 percent of ₹49,30,000 is ₹2,46,500
Total value = ₹51,76,500
This is your market value. You now have a number that is fair and based on real deals.
Example 2 –
You own a 3 BHK villa. It is 1,500 sq. ft.
Nearby sales show rates of ₹6,600
₹6,800
₹7,000 per sq. ft
Average is ₹6,800 per sq. ft
So, ₹6,800 × 1,500 = ₹1,02,00,000
You have two balconies and a private garden. Add 10 percent. That is ₹10,20,000
Total value = ₹1,12,20,000
What About Rent-Based Valuation
If you rent out your property, you can use the income method. You look at how much rent it earns every year. You remove expenses. Then divide the result by return rate.
Let us say your flat in Dwarka earns ₹1,20,000 a year.
Expenses are ₹20,000
That leaves ₹1,00,000
Return rate is 6 percent
So, ₹1,00,000 ÷ 0.06 = ₹16,66,667
This is your market value based on rental income
This works well for investors. It also helps banks understand your property better.
What Increases the Value
Many small things can change the number. Some push it up. Some pull it down.
- Scenic views like a forest or a river
- Extra features like a pool or a gym
- Higher floor with a lift
- Better layout or Vastu
- Good sunlight and ventilation
For example, a flat in Shivatman by Naiknavare has full-height windows and a quiet location. That gives it an edge. Buyers are ready to pay more. Not just for the flat. But also for peace and comfort.
Always Check Legal Details
Make sure your property has clear title. No loan. No legal case. It should be RERA registered. Buyers and banks will check all of this. If something is missing, your value will drop.
If your home is part of a township like Kutumb or Aranya, you already have an advantage. These projects come with legal clarity, planned layout and community services. That adds value without you doing anything extra.
Circle Rate Must Not Be Ignored
Even if your value is based on sales, you must check the circle rate. If your calculated value is below it, you may face issues. The Income Tax Act says that stamp duty must match or exceed the circle rate. If it does not, tax will be charged on the higher number.
So always compare both. Use the higher number while planning your deal.
Why This Helps You
Knowing the market value helps you:
- Sell at the right price
- Negotiate with buyers or agents
- Get the correct home loan
- Stay safe from tax trouble
- Plan your next property move
Without this number, you are guessing. With this number, you are in control.
Stay Smart With Regular Checks
Prices change often. A new road or metro line can raise the value. A new school or hospital nearby can also help. So check your property’s value every six months. That way, you never fall behind.
You can also ask a certified valuer for a report. This works well when dealing with banks or while planning to sell. For homes in big projects, this can be a small step with big returns.
Final Thought
If you want to know the market value of property, start by doing your own research. Check local deals. Use the right formula. Adjust for your property’s strengths. Compare it with the circle rate. Then cross-check with expert advice.
If your home is part of a Naiknavare Developers project, you are already one step ahead. Their projects come with quality construction, clear papers and good resale demand. That makes the value more solid. You just need the right number to make it work for you.
FAQs
Q1. What is the market value of the property?
It is the price a buyer will pay and a seller will accept under normal conditions. No pressure. No discounts. Just a fair deal.
Q2. How can I calculate the market value of property?
Check 3 to 5 recent sales in your area. Take the average price per sq. ft., multiply by your flat’s size. Add or subtract for features like view or condition.
Q3. Is the circle rate the same as the market value?
No. Circle rate is the government’s minimum rate for tax. Market value depends on demand and real deals. Both can be different.
Q4. Can I use rental income to find market value?
Yes. If your flat earns rent, divide the yearly income (after expenses) by the return rate. That gives you a value.
Q5. What increases the market value of a flat?
View, higher floor, Vastu, extra parking, good layout, and clear title. Projects by trusted builders also help.
Q6. Does Vastu matter in market value?
Yes. In places like Pune, buyers pay more for Vastu-compliant homes. It can add 5 to 10 percent.
Q7. How often should I check the market value of property?
Every six to twelve months. Prices can change fast, especially if new roads or metro stations are coming up.
Q8. Can I trust online property value calculators?
They give a basic idea. But for a serious deal, always check local sale rates and talk to a certified valuer.
Q9. Will banks use my market value for home loans?
They will do their own check. But if your number is close to their valuation, you will get better loan terms.
Q10. Can Naiknavare Developers help with property valuation?
Yes. If your home is in one of their projects, you can get expert help to understand your property’s true value.