“ Project Report on Valuation Report of Building (Model) and Drawings of

Service ’’

Declaration Certificate

I hereby declare that the Project entitled "Valuation Report of Building(Model)

submitted by Govind in partial fulfillment of requirements for the award of degree
in Tech.( Civil) of MDU Rohtak record of my Own work carried under the
supervision and guidance of Mr. Vineet Dhawan ( Co-ordinator ), During a period
of 01-10-2022 to 30-11-2022 Architect/Valuer Shri Radhe shyam (External
Supervisor) of Department of Civil Engineering, University Institute of
Engineering & Technology (UIET MDU) M. D. University, Rohtak.

Signature of Student

This is to certified that the statement made by candidate is correct to best of my/our
knowledge.

Signature of supervisor ( External )

Signature of supervisor ( Coordianator )

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 “ Project Report on Valuation Report of Building (Model) and Drawings of
Service ’’

ACKNOWLEDGEMENT

I am highly indebted to Mr. Vineet Dhawan ( Co ordinator ), Sh. Radhe Shyam (

Architect/Valuer) , for their guidance and constant supervision online as well as
offline for providing necessary information regarding the project and also for their
support in completing the project and also for their support in completing the
project.

I would like to express my gratitude towards my parents, Director, UIET, MDU

for their kind cooperation and encouragement which helped me in completion
of this project.

I would also like to express my special gratitude and thanks to company

persons for giving me such attention and time.

My thanks and appreciations also go to my colleagues in developing the project

and people who have willingly helped me out with their abilities.

Govind

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“ Project Report on Valuation Report of Building (Model) and Drawings of
Service ’’

INDEX

Sr. Topic Page

No. No.
1. About Valuation
1. Valuation report of Building
2. Photographs of Model &
Latest status of Building
3. Drawing of Service Plans

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 “ Project Report on Valuation Report of Building (Model) and Industry
and Drawings of Service ’’

ABSTRACT

What Is Building Valuation?

Valuation of the building is the method of calculating the current

marketable cost of a building or any structure.

Building Valuation depends on the type of structures, location, size, shape,

and width of roads, frontage, types, and quality of building materials used, and
the cost of these materials.

Building Valuation also depends on the height of the plinth, the height of the

building, the thickness of its walls, and the nature of the structure (such
as Load-bearing or framed structure).

What Is the Valuation of Building ?

Valuation is the technique of estimating and calculating the fair value of

the property such as a building, a factory, or other engineering structures of
various types, buildings, land, etc.

The location of a building also plays an important role in deciding its value of a

building. For example, a building located in a market area would have a
stronger and higher valuation than the same building located in a residential
area.

Also, the buildings located in areas with proper municipal water supply, sewer,

and electricity have increased values.

A building located on freehold land generates a higher

valuation amount compared to a building located on leasehold land.

The valuation of a building also depends on the demands for purchase which

varies from time to time. More demands make the building more valuable.

The valuation in civil engineering also depends on the income

the building can generate if let out. If a building is not let out, then 6% of the
capital cost of the building is considered the annual rent.

It changes from time to time and location and depends on the prevalent market

price.
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 “ Project Report on Valuation Report of Building (Model) and Industry
and Drawings of Service ’’

Purposes of Valuation

The main purposes of building valuation are as follows

1. Buying a Property

When it is required to buy or sell a property, its valuation is required.

2. Taxation

To assess the tax of property, valuation is required. Taxes may

be included municipal tax, health tax, Property tax, etc, and all
the taxes are fixed on the valuation of the structure.

3. Rent Function

In order to determine the rent of a property, it is required. Rent is

usually fixed on a certain percentage of the amount of valuation e.g. 6% to
10% of the valuation of structures.

4. Mortgage or Security of loans

When loans are taken for the security of the property, a valuation is required.

5. Compulsory acquisition

When a property is acquired by law, compensation is paid to the owner.

To determine the amount of compensation, a valuation of the property
is necessary.

6. Salvage value

It is the approximate resale value of a property at the end of its useful

life. Salvage value is deducted from the cost of a fixed asset to determine the
amount of the asset cost that will be depreciated.

7. Scrap value

It is defined as the Value of dismantled materials. For a building when the life is

over at the end of its utility period, the dismantled materials like steel, timber,
bricks, etc will fetch a certain value which is called the Scrap Value of that
building.

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 “ Project Report on Valuation Report of Building (Model) and Industry
and Drawings of Service ’’

8. Market value

It is the property is the amount that can be obtained at any particular time from

the open market if the property is put on for sale. Market Value may differ from
time to time according to demand and supply.

9. Sinking fund

It is a technique for depreciating an asset while generating enough money to

replace it at the end of its useful life. This fund sits in a sinking fund account
and generates the interest value of the property.

10. Book value

It is the amount shown in the account book after allowing

the necessary depreciation. The Book Value of the property at a particular
year is the original cost minus the amount of depreciation up to the previous
year.

11. Depreciation

This term represents the reduction in the market value of an asset due to age,

wear and tear, and obsolescence.

Building Valuation Methods

Following are the 5 methods of valuation,

1. Rental Method of Valuation

2. Direct comparison with a capital value
3. Valuation based on profit
4. Valuation based on cost
5. Development method of valuation
6. Depreciation method of valuation

1. Rental Method of Valuation

In the Rental Method of Valuation, the net income from the building

is calculated by deducting all the outgoings from gross rent. A year’s purchase
value is calculated by assuming a suitable rate of interest prevailing in the
market.
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 “ Project Report on Valuation Report of Building (Model) and Industry
and Drawings of Service ’’

The net income multiplied by the year’s purchase gives the capitalized value

or the valuation of the property. This method is used only when the freight is
known or probable rent is determined by inquiries.

2. Direct Comparison with Capital Value

When the rental value is not known, this method of direct comparison with

the capital value of a similar property of the locality is used.

In this method, the valuation of the property is fixed by

direct comparison with the capitalized value of similar property in the locality.

3. Valuation Based on Profit

This method of valuation is suitable for commercial properties such as

hotels, restaurants, shops, offices, malls, cinemas, theaters, etc.

for which the valuation depends on the profit. In such cases, the net

annual income is used from the valuation after deducting all
the outgoings and expenses from the gross income.

The valuation of a building or property is found by multiplying the net

income by the year’s purchase. The valuation, in this case, can be too
high in comparison with the actual cost of construction.

4. Valuation Based on Cost

In this case, the actual cost of construction of the building or the

cost incurred in possessing the building is considered as the basis
to determine the valuation of the property. In this case, necessary
depreciation is allowed and points of obsolescence are considered.

5. Development Method of Valuation

This method is suitable for properties that are in the developmental stage. For

example, if a large place of land is to be divided into plots after provision
for roads and other amenities, this method is used.

The probable selling price of the plots, the area required for amenities, and

other expenditures for development are considered for valuation.

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 “ Project Report on Valuation Report of Building (Model) and Industry
and Drawings of Service ’’

The development method of valuation is also used for properties

or buildings which are required to be renovated by making alterations,
additions, improvements, etc.

The value is calculated based on the anticipated net income generated from

the building after renovation work is complete.

6. Depreciation Method of Valuation

Based on the depreciation method, the valuation of the buildings is divided

into four parts:

1. Walls
2. Roofs
3. Floor
4. Doors and windows
The cost of each part of the property or building at the present rate is
calculated based on detailed measurements of the structure. The life of each
part is calculated by the formula:

D = P [(100 – rd)/100)] n

Where, D = depreciated value

r = rate
d = depreciation
n = age of building in years

Life of 100 Years 75 Years 50 Years 25 Years 20 Years

Building

rd 1.0 1.3 2.0 4.0 5.0

The valuation calculated for any building or structure is exclusive of the cost

of land, amenities, water supply system, electrical fittings, sanitary fittings,
etc., and is used only for buildings that are well maintained.

If it is not well maintained, then suitable deductions are considered in

the valuation calculated above. The current values of the land, amenities,
water supply system and electrical and sanitary fitting should be added
to find the valuation of the property or building.

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“ Project Report on Valuation Report of Building (Model) and Industry
and Drawings of Service ’’

Valuation
Report of
Building

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 “ Project Report on Valuation Report of Building (Model) and Industry
and Drawings of Service ’’

Dt. 25-11-2022
The Branch Manager
SBI, SEC 13 , PBB BRANCH

As requested for the valuation of Residential Building Situated at–

H.no 156, B- block New Model Town Extn HISAR, Near Rishikul
School . built on Land Area measuring 83.61Sq. Mt. or 100.0
Sqyds.which is Owned By-Sh. Kaliram S/o sH. Mani ram The
valuation report of above property, whichwas inspected and prepared
as per instructed by you, is sent herewith for your records.

1. Fair Estimated Market Value of the Property : Rs. 56.60 Lacs

2. Estimated Realisable Value of the Property : Rs. 48.11 Lacs

3. Estimated Distress Value of the Property : Rs. 45.28 Lacs
4. Estimated Govt. Value of the Land : Rs. 15.0 Lacs
5. Insurance Purpose of Building Value : Rs. 5.0 Lacs

Signature and seal of Registered Valuer

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