Belting Method of valuation
1. Value of a plot of land has a great bearing on its road frontage. Frontage land
has a greater value than back land.
2. So in order to find out a more realistic value of land the entire plot is divided into
a number of convenient strips by lines parallel to the centre line of the road.
3. Each such strip of land is known as belt. The depth of front belt is judicially
ascertained on the consideration (the depth of the land and) to what depth of the
land does the maximum value extend.
4. Then a relationship regarding the value and the depth of each belt to the front
belt is fixed up. Ascertaining rate per sq.m of land for the first belt the value of
each belt is worked out.
5. Multiply the area of each belt by respective related rate per unit area.
6. After summing up the value of each belt the value of the entire plot of land can be
known. This system of valuation is known as Belting Method of Valuation.
7. Normally the plot of land is divided into three belts. The depth of the second belt
is taken as 1.5 times that of front belt and the depth of the third belt at 1.5 times
the depth of the second belt or depth remaining after second belt is considered
as the depth of third belt.
8. Value of front belt is maximum. The second belt is valued at two-third rate of first
belt and the third belt is valued at half rate of first belt.
9. Value of recessed land not lying within the perpendiculars drawn on belting lines
from the end points is valued at three-fourth value in that particular belt of land.
10. For diagram refer the sums of belting method.
Land Valuation Methods & Factors For Valuation Of Land
Land Valuation is the technique of estimating and determining the fair price or value of a land parcel.
In this article, we explain you all major land valuation methods, any or all of which can be used for
valuation of land depending on the amount of information available.
Land can be classified into agricultural & non-agricultural in both urban and rural areas. Generally,
land in an urban area whether agricultural or non-agricultural is valued higher than rural land.
Agricultural land which is more fertile is generally valued higher than barren land. Non-agricultural
land can be classified into residential, industrial or commercial and the value of such lands primarily
depend on the development potential by constructing appropriate structure over them.
Now let us first understand the factors on which valuation of land depends. Then, we will see various
land valuation methods.
Factors for Valuation of Land
1. Location
As they say, in real estate, its location, location and location. The biggest factor in land valuation is
the location of land. Land in an urban area is more expensive than rural land, value of land in city
centre is higher than the land in outskirts.
2. Usage
A commercial land is more valuable than residential or industrial land. Similarly, residential and
industrial lands are more valuable than agricultural land. Hence, it is important to determine the
usage of land to evaluate its price.
3. Size
Smaller residential plot sizes generally fetch higher per unit rate as compared to larger plots because
of affordability reasons. However, if the land can be used for industrial or commercial purposes,
larger plot sizes may command a premium.
4. Shape
Generally, square or rectangular plots are preferred over irregular shapes. Hence, regular shaped
plots of land command higher prices.
5. Level
If the level of land is higher than the adjacent road, it will be difficult to lay water & drainage lines.
Extra earth has to be excavated to make the plot at reasonable level. Similarly, if the land is
considerably lower than the road level, substantial cost will be incurred in land filling. While valuing
a piece of land, you should keep in mind all such levelling costs.
6. Frontage and Depth
A land with higher width facing the street or road commands premium. Similarly, the value of land
also depends on its distance from the main road. A plot in the fourth or fifth street from main road is
priced much lower than the one which faces the main road.
7. Return Frontage
A plot with multiple frontages commands premium over a plot with single frontage. For eg. a corner
plot or a three side open plot will be priced higher than a plot with only one side open to road.
8. Accessibility
The value of land also depends on its accessibility. If a plot of land is land locked or if the access
road is not wide enough, it will fetch much lower prices.
9. Floor Space Index (FSI)
Floor Space Index is the ratio of built up area to the area of land. The value of land also depends on
FSI or in other words on the total floor area of the building that can be built on the plot.
10. Infrastructure & Development
The infrastructure & development in the vicinity of land have direct bearing on prices. A well-
developed area which has schools, hospitals, wide roads, metro, 24X7 water supply & power will
naturally fetch higher prices.
11. Nature of Soil
The bearing capacity of soil also affects the land valuation. If the soil bearing capacity is good, cost
of foundation will be reasonable. However, the cost of foundation can go up significantly if the soil
bearing capacity is poor. Hence, land with good soil bearing capacity will be priced higher.
12. Vastu
Many people in India believe in Vastu Shastra. North facing and East facing plots command
premium over West facing and South facing plots.
