It is generally believed that land acquisition acts gave birth to Real Estate Valuation Profession. Till date we do not have any data bank for valuation of market prices for sites at various good localities of Mysore.
My intention in writing this article is to make one aware of the ruling prices of sites in lead extensions such as Gokulam, V.V.Mohalla, Vijaynagar I, II, III, IV stages, K.D. Road, Kuvempunagar etc.
Let us define Urban Real Estate – “Real Estate is property made up of land and the buildings on it.”
Generally a city is broadly divided by the town planning division into zones such as
- Residential Zone
- Commercial Zone
- Industrial Zone
Here I am discussing the Residential Zones and Commercial Zones in particular
- GREY AREA’s of arriving at the market prices of a particular locality.
It surprises me that even after spending my 33 years of living experience in the city of Mysore. Even the elite class of citizens of Mysore and majority of business men do not know how to access their own property in terms of its value in the present market.
- Rule one : The smaller size properties always cost more per sq. foot compared to the larger size in the same locality or even on the same road.
Let me demonstrate this with an example
- A 20*30 site in Vijaynagar IV stage costs Rs. 30 lakh, 5000/sqft
- A 30*40 site in Vijaynagar IV stage costs Rs. 55 lakh, 4580/sqft
- A 40*60 site in Vijaynagar IV stage costs Rs. 80 lakh, 3333/sqft
- A 50*80 site in Vijaynagar IV stage costs Rs. 1 crore, 2500/sqft
The example above is the basic approach to arriving at market prices, depending on various factors such as location, facing, width of road, shape of plot, demand of plots in the area etc.,
It is a very elaborative subject which will need several hours to explain. However, let me restrict myself in giving you the guidelines which is to the best of my knowledge a more practical guide for investors or buyers in general.
My guidelines are restricted to MUDA properties and properties coming under Mysore Municipal Corporation Limits.
- Yadavgiri à 4000-5000/sft
- V.Mohalla à6000-7000/sft
- Gokulam à5000-6000/sft
- Vijaynagar I stage à5500-6500/sft
- Vijaynagar II stage à5500-6500/sft
- Vijaynagar III stage à5500-6500/sft
- Kalidasa road à10000-12000/sft
The above values have been taken into account on a careful evaluation of sale of sites in the recent period after the demonetization of currency in India.
However, looking into the future my predicament is an optimistic one and I tend to disagree with the majority that Real Estate has fallen flat and it is showing no signs of recovery.
The factors affecting the real estate value will be both physical and economic. Factors such as local population, employment opportunities change in services, trade and commerce, infrastructure facility like roads, water supply, drainage, power supply and telecommunication lines.
Keeping in view the recent developments at the city of Mysore with regards to connectivity just wait for the commencement of 10 lane road link between Bangalore and Mysore and the overhead pass of the Mysore Airport to take place.
“REAL ESTATE WILL TAKE A HUGE SURGE FORWARD”.
In this article I have tried to give a birds eyeview on the approach to evaluating market prices at premium localities of Mysore. I will be giving deeper insights on these topics in my forthcoming magazines.