Delhi 3-bed, 50 m² at ₹19,620,000: how would you adjust the comparables?

E

EzraMoss

Landlord
The fact that only one comparable is a completed sale worries me more than the property’s 57 days on the market. The other three are asking prices, which is weak evidence of where this Delhi apartment might actually sell.

The apartment is about 50 m² with three bedrooms and an asking price of ₹19,620,000. It has good natural light and suits me geographically, but its finishes need attention and I would call the overall condition average. My provisional repair allowance is equivalent to eleven months’ rent, although that is only a placeholder until the work is priced.

I am reluctant to adjust the comparables until I know whether all of them use the same definition of floor area. Parking, private outdoor space and the actual service charges also need matching. Would you settle those points before assessing condition, and would you deduct itemised repair costs rather than use a broad condition adjustment? I would still obtain a local appraisal before relying on the comparison.
 
First establish what the 50 m² measures—carpet area, built-up area or something else. At the asking price, the simple figure is ₹392,400 per m², but that comparison is misleading if the listings use different area definitions.

I would adjust the completed sale for identifiable repair costs rather than apply a generic condition percentage. The exact micro-location would probably change my view most.
 
Does the apartment include parking or any private outdoor space, and do the comparables match on those points? Also, what are the actual service charges rather than the suspected level? With only one completed sale, those differences could matter more than a broad condition grade.
 
I’m not convinced area definition is necessarily the biggest issue. In Delhi, two apartments with the same stated area can still be poor comparables if their immediate surroundings, floor, light or parking differ substantially.

I’d use the completed transaction as the anchor, treat the three asking prices only as evidence of seller expectations, and prepare low/base/high scenarios. Deduct documented work in the base case, then use the low case for uncertain service charges and dated finishes. Eleven months of rent is not a reliable repair allowance unless it happens to match an itemised scope.
 
Agreed on itemising the work. I’d also confirm the tenure or remaining lease length, exact floor-area basis, recurring charges and parking status before choosing an adjustment. Until those are known, a precise percentage would imply more confidence than one completed comparable can support.
 
You must log in or register to reply here.
Back
Top