It’s no secret that the real estate market in India is booming. In Kerala, this growth has been particularly remarkable. Not only has there been a surge in the number of people buying land, but the fair value of land has also risen significantly. If you’re planning to buy land in Kerala, it’s important to know what its fair value is for 2023. In this blog post, we will take an in-depth look at the fair value of land in Kerala 2023 and everything else you need to know about investing in real estate. We’ll start by looking at past trends and then move on to examining current policies and regulations related to property purchases in Kerala. Finally, we’ll discuss the potential risks associated with investing in real estate and how you can mitigate them.
What is fair value?
The term ‘fair value’ refers to the value of an asset or liability as determined by an independent, objective third party. In other words, it is the price that would be agreed upon by a willing buyer and seller, where neither is under any compulsion to act, and both have reasonable knowledge of the relevant facts.
In the context of land valuation, fair value is typically taken to mean the market value of the land. Market value is defined as the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
Fair value estimation of land involves various aspects such as identification and analysis of transactions of similar properties (comparables), assessment of location advantages and disadvantages, evaluation of physical features affecting desirability and usefulness etc. The process requires consideration of both qualitative and quantitative data in order to derive a comprehensive estimate of fair value.
How is fair value calculated?
The fair value of land is calculated by taking into account a number of factors, including the location of the land, its size, and its potential for development. In Kerala, the fair value of land is often calculated by taking into account the following factors:
– The location of the land: Land in Kerala is typically located in rural areas, which can make it difficult to assess its true value. However, land that is located close to urban areas or tourist destinations will usually be worth more than land that is located in a remote area.
– The size of the land: The size of the land plays a significant role in determining its fair value. Generally speaking, larger pieces of land will be worth more than smaller pieces of land.
– The potential for development: The potential for development is another important factor to consider when assessing the fair value of land. Land that has potential for commercial or residential development will usually be worth more than land that is not suitable for development.
What factors influence fair value?
There are a number of factors that can influence the fair value of land. Some of these factors include:
-The location of the land. Land in desirable locations will typically be worth more than land in less desirable locations.
-The size of the land. Larger pieces of land will usually be worth more than smaller pieces of land.
-The condition of the land. Land that is in good condition will typically be worth more than land that is in poor condition.
-The amenities that are available on the land. Land that has access to amenities such as water, electricity, and roads will usually be worth more than land that does not have such access.
What is the fair value of land in Kerala?
When it comes to the fair value of land in Kerala, there are a few things that you need to take into account. The first is the location of the land. If the land is located in a rural area, then the value will be lower than if it is located in an urban area. The second thing to consider is the size of the land. The larger the piece of land, the higher its value will be. Finally, you need to think about what you intend to do with the land. If you plan to build a house on it, then the value will be higher than if you simply want to use it for farming.
With all of these factors in mind, let’s take a look at some specific examples of fair value for land in Kerala. A one-acre plot of land in a rural area might be valued at around Rs 5 lakhs. A one-acre plot of land in an urban area might be valued at around Rs 10 lakhs. And a one-acre plot of land with a house on it might be valued at around Rs 15 lakhs. These are just rough estimates, however, and the actual value of any given piece of land will ultimately depend on all of the factors mentioned above.
How has the fair value of land in Kerala changed over time?
The fair value of land in Kerala has changed over time due to various factors such as inflation, population growth, development of infrastructure and so on. The government has taken various steps to ensure that the land prices do not increase beyond the reach of common people. However, there has been a continuous rise in the fair value of land in Kerala.
As per a report by Housing and Urban Development Department (HUDD), the average cost of 1 square feet land in Kerala was Rs.9450 in 2014. This rate increased to Rs.13810 in 2017, an overall increase of 46%.
The maximum cost of 1 square feet land was seen in Ernakulam district with an average cost of Rs.17430 followed by Idukki district where the average cost was Rs 16270 per square feet. The minimum cost was seen in Kasaragod district where the average cost was Rs 7490 per square feet.
As per another report by HUDD, from 2014 to 2017, there is an overall increase of 71% in the fair value of land in Kerala when considering all 14 districts. The highest percentage increase was seen in Ernakulam district with an increase of 86% followed by Idukki district with an increase of 84%. The lowest percentage increase was seen in Pathanamthitta district with an increase of 47%.
It is evident that there is a significant change in the fair value of land in Kerala over time. The reasons
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In conclusion, the fair value of land in Kerala for 2023 will depend on a number of factors such as location, availability, and development potential. The increasing demand for properties in the region has resulted in an increase of land prices. Investors should therefore be aware that they may have to pay more than expected to acquire their desired property. That being said, with proper planning and research, it is possible to find good deals that can potentially yield great returns over time.