Valuation of building or property is the method of calculating the present marketable cost of a building. Valuation of a building depends on the sort of building, its structure, durability, location, size, shape, the width of roads, frontage, types and quality of building materials used and the cost of these materials.
Valuation of a building also depends on the height of the plinth, height of the building, thickness of its walls, nature of structure (such as load bearing or framed structure), type of flooring, roofing, doors and windows etc.
Location of a building also plays an important role in deciding the 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 a freehold land generates a higher valuation amount compared to a building located on the 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.