Binoy BV, Naseer MA and Anil Kumar PP
Land value is a measure of the specific features of a property, excluding buildings and other developments. Land value varies depending on the economic, geographic and political…
Abstract
Purpose
Land value is a measure of the specific features of a property, excluding buildings and other developments. Land value varies depending on the economic, geographic and political aspects of a particular location. The primary purpose of the paper is to identify the general and location-specific attributes impacting property prices in urban Kerala.
Design/methodology/approach
The objective of the current study was achieved through a three-cycle Delphi survey and relative importance index (RII) approach. The experts who aided in the survey had a mutual interest in the subject but came from different backgrounds like property valuation, real estate, urban and environmental planning. The initial group of variables identified from the literature was expanded and scrutinized in the first cycle of the Delphi survey. The variables were grouped into five major categories and 13 subcategories based on the literature and expert opinion. In the subsequent stages, the short-listed variables were rated on a seven-point Likert scale until a consensus was attained. The top-ranked variables were identified through the RII method as the critical factors influencing land value in urban Kerala.
Findings
The results indicate that road accessibility and proximity to nuisance sources are the most crucial parameters. The outcome of the study will provide a better understanding of the dynamics of land value and the influencing factors in urban areas.
Originality/value
Previous studies do not give much consideration for the location-specific variability on the influencing parameters. Property management research has not considered the usage of expert opinion and RII for variable selection.
Details
Keywords
Sumant Sharma, Deepak Bajaj and Raghu Dharmapuri Tirumala
Land value in urban areas in India is influenced by regulations, bylaws and the amenities associated with them. Planning interventions play a significant role in enhancing the…
Abstract
Purpose
Land value in urban areas in India is influenced by regulations, bylaws and the amenities associated with them. Planning interventions play a significant role in enhancing the quality of the neighbourhood, thereby resulting in a change in its value. Land is a distinct commodity due to its fixed location, and planning interventions are also specific to certain locations. Consequently, the factors influencing land value will vary across different areas. While recent literature has explored some determinants of land value individually, conducting a comprehensive study specific to each location would be more beneficial for making informed policy decisions. Therefore, this article aims to examine and identify the critical factors that impact the value of residential land in the National Capital Territory of Delhi, India.
Design/methodology/approach
The study employed a combination of semi-structured and structured interview methods to construct a Relative Importance Index (RII) and ascertain the critical determinants affecting residential land value. A sample of 36 experts, comprising property valuers, urban planners and real estate professionals operating within the National Capital Territory of Delhi, India, were selected using snowball sampling techniques. Subsequently, rank correlation and ANOVA methods were employed to evaluate the obtained results.
Findings
Location and stage of urban development are the most critical determinants in determining residential land values in the National Capital Territory of Delhi, India. The study identifies a total of 13 critical determinants.
Practical implications
A scenario planning approach can be developed to achieve an equitable distribution of values and land use entropy. A land value assessment model can also be developed to assist professional valuers.
Originality/value
There has been a lack of emphasis on assessing the impact of planning interventions and territorial regulation on land values in the context of Delhi. This study will contribute to policy decision-making by developing a rank list of planning-based determinants of land value.