Tribhuvan University

Institute of Engineering

DEPARTMENT OF CIVIL ENGINEERING

Pulchowk Campus, Lalitpur

A
VALUATION REPORT
OF
THE PROPERTY OF
MR.MADHAV GYAWALI
WARD NO: 3, KATHMANDU

Submitted to:
Submitted by:
Mr. Puspa Das Mulmi
VidhanAryal
(Department of Civil Engg)
(066/BCE/ 144)
Date of Submission:
Jul 22, 2013
 ACKNOWLEDGEMENT
I would like to express my deep appreciation to Er. Puspa Das Mulmi
providing us an opportunity to prepare a report on Valuation which is present under the
subject Construction Management in 8th semester. This will certainly provide knowledge to
face the difficulties in the real field.We were given an assignment to valuate a residential
property of our choice and prepare its complete valuation report.

I would also like to express my gratitude to all my friends for providing me a sample
valuation report and their supporting mefrom beginning to completion of the report
without which it would have been difficult for its preparation in time.

Besides this, its my duty to express my thankfulness to SishirGyawali for providing

me necessary documents, drawings, coordination and support required for preparation of
this report.

Finally I would like to apologize for any errors and mistakes in this valuation report as
it was meant to be a part of learning process.

VidhanAryal
066/BCE/144

1
 VALUATION CERTIFICATE

On the request of Pulchowk Campus of Ward No. 15Pulchowk, Lalitpur Sub-

metropolitan, theproperty belonging to Mr. Madhav Prasad
GyawaliKathmandumetropolitan was inspected, measured and relevant notes were made
during the inspection visit on Saturday 20th July, 2013, in order to prepare a report
incorporating all the observations and details affecting the valuation exercise. It is based on
the facts,figures and documents supplied by owner, our detailed assessment of the
property, the surrounding locality and the prevailing developmental trends. The property
that has been valuated is located in Kathmandu, Ward No 3, Basundharain Kathmandu
district of Bagmati zone. The plot number of the property is 104,254,255. The property
comprises of a plot of land measuring 9 ropani,1paisa,1daam, as per the land ownership
paper which matched in actuality on which is a two and half storied building,which is
currently being used for residential purpose.

A valuation report of this property has been prepared on the basis of an examination
of the relevant land ownership paper, available cadaster map, physical verification of the
site, detailed discussions with relevant persons and on prevailing norms as well as
procedures that I have involved through my various experiences.It is my considered opinion
that the valuation of the aforementioned property is Rs.2,19,34,801and in words :
TwoCrore, nineteen lakhs, thirty four thousand, Eight Hundred and one

I also hereby, declare that I have no direct or indirect interest in the property that has been
valuated.

22nd July 2013

VidhanAryal
066/BCE/144

2
 TABLE OF CONTENTS

ACKNOWLEDGEMENT 1

VALUATION CERTIFICATE 2

TABLE OF CONTENTS 3

1. Description of the property: 4

2. Valuation of the property 5

3. Summary of valuation 8

4. Appendix 9

Appendix I:Introductory details about the property in the name of Mr. Madhav Prasad Gyawali 9

Appendix II:Technical details about the property in the name of Mr. Madhav Prasad Gyawali 11

Appendix III:Land ownership certificate 13

Appendix IV: Citizenship certificate 14

Appendix V:Land value calculation 15

Appendix VI:Depreciation calculation 16

Appendix VII:Land area calculation 17

Appendix VIII:Building area calculation 18

Appendix ix Verified Municipal drawings and legal Documents 19-25

3
1. Description of the property:
A. Property inspection:
On the request of PulchowkCampus(IOE), the property belonging to Mr. Madhav Prasad
Gyawali, located in ward no. 3,Kathmandu Metropolitan was inspected for valuation on 20th
July 2013, as property evaluator. The property that was inspected consists of a good house
on a plot of 9 aana,1 paisa,1daam i.e. 3118.14 sqft
The inspection visit revealed the following details:-

i. Owner of property:- Mr.Madhav Prasad Gyawali

ii. Location of property ward no. 3,Kathmandu Metropolitan
iii. Plot number of property:- 104,254,255
iv. Land Area:9 aana,1 paisa,1daam i.e. 3118.14 sqft.
v. Building Description:-Residential house, 2&1/2 storey.
vi. Approach road details:- Bituminous Road

The property, as has already been mentioned in discussion has direct access to the
main road of 8ft 3inch.Bituminous Road
The approach road to the plot is on the N-S direction,

B. Property description:
i. The property that was inspected and has been valued comprises of rectangular
shaped, flattish property on which is a two and half storied residential house.
ii. Type of property: Private.
iii. Land details:-
a. Shape:- Trapezoidal shaped
b. Topography:- Flattish
c. Frontage:- 43 ft 5 inch

iv. Services:-
a. Water Supply: Yes
b. Electricity:- Single phase connection from NEA
c. Sewerage:- yes
d. Telephone: Yes
v. Immediate Environment:-
4
 The immediate environment are residential area in all directions.
vi. Site constraints:-
No any transmission line of electricity, no landfill site of solid waste nearby.

2. Valuation of the property

A. Basis for valuation:

i. Detailed study of the ownership documents and available cadastral map.
ii. Detailed examination of the available drawings of the buildings.
iii. Physical verification of the site by site visit and detailed measurements of the land
and buildings.
iv. Discussions with people knowledgeable about property values.
v. Local market survey to determine ongoing commercial rates and,
vi. Comparison with valuations of similar properties.

B. Qualifying and Limiting conditions:

a) The total area of the property is 9 aana,1 paisa,1daam i.e. 3118.14 sqft. according to
the land ownership paper. The plot which are adjoining with 8 feet 3 inch wide
bituminous road.
b) The central location of the property is the main reason for the high price of the land
under discussion.
c) Since the frontage of the land under discussion is not very much, the price of the
land will be moderate.
d) Since the access road is comfortable 8road, the value of the property on this road is
enhanced.
e) The land value has been determined using the weighted average method, in which
the governmental value has been given 10% weight age, commercial valuation has
determined by our spot valuations and market survey is given 30% weightage and
the distressed value based on our earlier studies and our fast experience has been
60% weight age.
f) The value of the building has been determined on the basis of prevailing unit costs
which are based on current market values.
g) The property under discussion is the private property.
h) It must be borne in the mind that,inspite of all the methods and calculations used to
determine the land value, it can only be indicative of the prevailing price. The final
scale figure of the buyer and seller during the final scale negotiations. For example, if
a seller is desperate to sell, he is most likely to sell at a price lower than that he
would have obtained if he had waited for proper moment. Similarly, if a buyer is
desperate to buy or if he likes a particular property, he would most likely pay more
than he would have if he bid his time.

C. Value calculation:
5
i. Valuation of land:
The valuation of any land is very depended on a number of important factors
such as the location, environment, size and shape of the property as well as the
supply and demand economics prevailing during the time of valuation.

In terms of location, the property is located in Residential area.

The immediate environment as has been mentioned is non busy residential area.
As regards the size of the property, it is fair compared to Kathmandu Municipality
standards.
As regards topography and shape the land under discussion is flattish and
rectangular shaped.
Apart from the above mentioned considerations, the property under discussion
must, above all, be evaluated within the context of supply and demand economic
prevailing in the country.
However, the price of the land ultimately depends on the psychologies of the buyer
and seller.
It must also be borne in mind that in the last few months, the prices of the lands
have tended to remain fairly static. The inflationary trend in land prices seems to
have levelled off.

The final scale figure is very depended on who is more desperate the buyer or the
seller. Generally speaking, the scale figure tends to be arbitrarily on the high side.
The scale figures can be referred to as Commercial Values.
With reference to the property under discussion, the value of the land has been
determined By using the weighted average method where 10% weightage has been
given to the value fixed by the government, 30% weightage to the commercial value
of the land fixed on the basis of market survey, our spot valuations and comparable
valuations and 60% weightage has been given to the distressed value as
determined by our past experiences. In the case of highly desirable areas, the
distressed value tends to be quite close to the commercial value. The different
values that have been considered in this valuation exercise are as follows:

By the weighted average method, the price of the land has been taken to beRs. 25
lakhs per Kattha. (Calculation shown in Appendix V: Land Value Calculation)

Description Area of Land Recommend land Value of

rate/aana(Rs.) land(Rs.)
Plot No. 104,254,255 9.11 aana 15,00,000 1,36,65,000/-
Ward No. 3
Kathmandu,metropolitan
Flattish , trapezoidal
Shaped land

6
ii. Valuation of Buildings:
As it has already been mentioned a two and half storied house.The floor plans and
site plan are given in appendix. The detailed description of the building are as follows:

Walls: Walls are made of local bricks in Cement mortar and internal and external
wall surface plastered with cement mortar. The plastered surface has been
painted.
Floor: Ground floor is solid floor type and neat cement finished and floor is RCC
floor slab.
Ceiling: The ceiling have been plastered and painted.
Doors and Windows: The doors and windows frame are of salwood. The window
shutter frames are also salwood. The shuttersare glazed. The windows have
grills, External doors have panelled shutters.
Roof: The roof is RCC.
Sanitary:Three bathrooms and two kitchens are fitted with standard sanitary
essentials.
Electrical: Wiring is sub-surface wiring. The electrical fixtures are of ordinary
type.

iii. Calculation of Value of the Building

S.N. 1
Age of the building 1
Plinth Area (sqft) 1094.92
First Floor Area (sq.ft) 1039.78
Second floor Area (sqft) 720.01
Prevailing plinth area rate/sqft Rs. 2,500
Value in terms of civil works Rs. 7,136,775
10 % of cw for sanitary Rs. 713,677.5
8% of cw for electricity Rs. 570,942.0
Total Cost Rs. 8,421,394.5
Depreciation rate/annum Rs. 151,585.10
Depreciated rate (Rs) Rs. 151,585
Present net value of building
Rs. 8,269,809
after deduction of depreciation

So present net value of the building= Rs. 8,269,809

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3. Summary of valuation
Thus the value of the property belonging to Mr.Ghanashyam Prasad Dahal can be
synopsised as follows:
1. Value of land= Rs.1,36,65,000/-
2. Value of building= Rs. 8,269,809/-

Total cost = Rs. .1,36,65,000+ Rs. 8,269,809= Rs. 2,19,34,801/-

(in words : TwoCrore, nineteen lakhs, thirty fourthousand, Eight Hundred
and one)

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4. Appendix
Appendix I:
Introductory details about the property in the name of Mr.Ghanashyam Prasad Dahal

1 Location Ward no 3, Kathmandu

2 Plot number 104,254,255
3 Area of plots 9 Aana,1paisa,1 Daam
4 Owner of property:
Owners name Mr.Madhav Prasad
Fathers name Gyawali
Grand fathers name
5 Age of owner 56
6 Current address of the owner Kathmandu -3

7 Details of surrounding properties

North Road
East Road
South Building
West Building

8 Details of access road

Type of road Bituminous Road
Width of road 8 ft3 inch.
9 Distance of property from nearest commercial 400 m from Narayan
built up area: GopalChowk
10 Site details
Shape Rectangular
Topography Plain
Width of frontage 45ft 5 inch

11 Site services
Water supply 6 inch pipe connected
Electricity Yes
Sewerage system Yes
Telephone line Yes
12 Site constraints(such as overhead high tension No
line, noise pollution, proximity of river, etc.
13 Classification of locality Middle
High/middle/poor/mixed class
14 Proximity to civic amenities like school, offices, Very Near ( 121 m)
hospital, commercial areas etc:
15 Agreement of easement: No
16 Is the property situated in residential, Residential area
commercial, industrial mixed
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17 What is the floor area ratio per ,meter and
percentage actually utilized
18 Name of the tenant No
19 Monthly rent No
20 Give details of water electricity telephone No
charges
21 Has the tenant to bear the whole or part of the No
cost of repairs and maintenance?
22 What is the amount of property tax? Who is it Rs 1428
to bear it?
23 Is the building insured No

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Appendix II:
Technical details about the property in the name of Mr.Madhav Prasad Gyawali
i. General description

1 Year of completion 2069 B.S.

2 Anticipated future life 50 yrs
3 Type of structure Framed
4 Current usage of structure Residential
5 Type of design Modern
6 Special architectural structures No
7 Current state of building Maintained
8 Number of floors 2.5
9 Plinth area of the building 1094.14Sq. ft
10 Total floor area of building 2854.71Sq. ft
11 Percentage coverage of site building 1.2
12 Other comments (if any) No

ii. Structural elements:

1 Type of foundation Strip foundation

2 D.P.C (type and 40mm
thickness)
3 Walls
a) External 10 B/W (1:4) in cement mortar
b) Internal 10 B/W (1:4) in cement mortar
c) partition 5 B/W (1:4) in cement mortar
d) Finishing (1:3) cement plaster & painted with water proof
cement paint
4 Floors
a) Ground floor Solid floor (cement plaster)
b) Finishing Inside plaster with no plaster on outer walls
5 Roofs:
a) Type RCC
b) Finishing
6 Doors
a) Frame Sal wood
b) Shutters Paneled sal wood and battened type
c) Fittings Medium class
d) Finishing Painting
7 Windows and
ventilators Sal wood
a) Frame Glazed
b) Shutter Ground Floor
c) Wire mesh MS grills
shutter Medium class
d) Grills Painting
e) Fittings
f) Finishing
11
 8 Staircase Yes
9 Other comments (if any) No

iii. Electrical installation detail:

a Type of wiring Conceal

b Type of fittings Ordinary
c Number of points 15
d Other comments No

iv. Sanitary installations details:

1 Quality of fixtures Ordinary

2 Details of fixtures
a. No. of water closets (commode) 2
b. No/ of basins 4
c. No. of urinals no
d. No. of bath tubs no
e. No. of kitchen sinks 2
f. No. of geysers no
3 Floor finish Mosaic
Tiles
4 Wall finish White Tiles
5 Water supply Intermittent
supply
6 Hot water system no
7 Underground tank (capacity and type) Not
Provided
8 Overhead tank 2 nos. PVC
(Location, capacity and type of construction) tank

9 Other comment if any No

v. Other features:

1 Sewage disposal system Septic tank, Sewarage

2 Road and pavements Yes
3 Compound wall Yes
4 Other landscape features No
5 Other comments if any No

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Appendix III:
Land ownership certificate

13
Appendix IV:
Citizenship certificate

14
Appendix V:
Land value calculation

1) Instances of sale of land in the locality if available date of sale price and area of land
sold: X
2) Comparison of the concerned land with the sold land as stated above:
better/similar/inferior/not applicable
3) Minimum registration rate as fixed by government: NRs. 8,00,000.00 per aana
4) Current market rate recommended by real estate company/ broker : NRs.
20,20,000.00 per aana
5) Distressed value= Rs. 14,80,000.00 per aana

6) Weighted average calculation:

Rs.(0.1*.8+0.3*20.2+0.6*14.8) lakhs
Rs. 15 lakh per aana

LAND VALUE

Land rate adopted in the valuation Rs. 15lakh per Aana

Net area considered for valuation 9.11 (3118.14Sq.ft)
Goss value of the land Rs.13665000

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Appendix VI:
Depreciation calculation

Employing straight line depreciation method.

Assuming scarp value (S) = @ 10 % of the total cost.

Life in years (N) = 50
Original cost (C) = 100 %
Depreciation = (C-S)/N
= (100-10)/50

= 1.8 % /annum
Total depreciaton =1.8/100*Rs84,21,394.5* 1
= Rs1,51,585.10

Present Value of property = Cost- Depreciation

= Rs8421394.5 -Rs 1,51,585.10
=Rs. 8,269,809

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Appendix VII:
Land area calculation

The land being trapezoidal in shape, the area of land was simply calculated by formula of
triangles and rectangles

Area of triangle:s(s-a)(s-b)(s-c) where a,b,c are sides of triangle

Area of rectangle:L*B

Calculating all areas we found

Total area of land = 3118.4 sqft

17
Appendix VIII:
Building area calculation

Ground floor 1094.92Sq. Ft

First floor 1039.78 Sq. Ft
Second floor 720.01 Sq. Ft
Total Floor area 2854.71Sq. Ft

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