Value is the esteem in which the piece of land you own is held or it can be sold out under market conditions. The higher the esteem, the greater is the value and the exchange power of the land. Assessing the present worth of your land and making an estimate of its value in future, is very important before you seal the deal. After all, buying a plot is a long-term investment that involves monetary returns.

The face value of the land is derived from the social and physical infrastructures emanating from it. In urban or suburban areas, the value is mainly linked to the type and nature of the services that can be generated from the piece of land.

What affects the value of your land?

“The location, surroundings and infrastructural development are the major factors that define the value of a particular land or region. In fact, good connectivity is a prime factor in the success of any real estate venture or appreciation of a land. Connectivity through road is directly proportional to the quality of life and it affects everyone’s life. Good quality of roads reduces the travel time between places,” says Aman Agarwal, governing council member NAREDCO & director, KV Developers.

“Well-planned physical and social infrastructure and promising real estate development makes the area potential. Being near the Metro train network has been a game changer in many localities and has changed everything by ensuring an easy commute and faster accessibility. Government policies have always been a major push to enhance the value of a particular land,” added Agarwal.

In order to help buyers, Magicbricks has compiled the key factors and their impact on land valuation:

Location: Location of the land is an important factor. The site plays a key role as it decides the face value of the land. Plots can be located in a gated community or on a barren highway. It may be agricultural land that can be used for productivity.

If it is a gated community, the location is well-established, so it will have a higher value. The plot is also under security of the community, so whoever buys it, has no worries about the illegal interventions of any third party.

Surroundings: After location, the second influencing factor is the surroundings. The establishment of the nearby areas also affects the market rate of the plot. The cost of land varies according to the facilities and social infrastructure available in the surroundings. The neighbouring localities and their development also affects the rates of any property. Prospective buyers would always opt for options that avail them better facilities with a cheaper price.

Connectivity: Connectivity also determines the price of any property. The value of a plot is estimated based on how and what can be generated from it in future. Better road and rail connectivity within the vicinity of the locality can add value to the piece of land. Interlinking of nearby areas by roads gives buyers a reason to invest, which have good rate of returns.

Social Infrastructure: The availability of social infrastructure around the plot is the most important aspect as it enhances the property value. Plots, which have well-established social infrastructure with proper hospitals, schools, markets and other necessities plays a major role in the lifestyle of the consumers. A good inspection of the locality can fetch you a great deal. All you need to do is analyse, explore and then decide.

The value of a property rises when there is development round the corner. The demand-supply scale automatically witnesses a hike, also adding value to the prices of the property. According to the Magicbricks data, in Chennai, localities like Old Mahabalipuram Road (OMR), Porur and Guduvancheri saw a rise in the demand for plots in the last quarter. West Chennai has comparatively good demand for plots across the city. The reason is the overall growth of the area.

“Easy accessibility and a good transportation system are the basic factors that drive the demand for properties. Although the real estate market has dipped a little after the floods, plots ranged between Rs 50 lakh to Rs 1 crore are mostly in demand in Chennai,” says Syed Rahman, a real estate agent from Rahman Properties.

Any new projects and plans contribute to the land valuation. A piece of land located near an upcoming airport, metro or railway station would be costlier than a plot available in any other area. Higher the demand, higher will be the land value.

Determine if the plot, where you are planning to buy, has the necessary infrastructure to build your home. After all, land investments give you the best returns. So, make a choice by determining the plot, considering the factors that affect the value of your investment.

Sukriti Yaduwanshi,