Finance
Property valuation: 5 methods you can use today
Comparable sales, income capitalization, replacement cost, DCF, and “gut feel” — when each method works best.
1. Comparable Sales (CMA)
Find 3–5 similar properties sold in the last 6 months in the same micro-market. Adjust for size, floor, view. This is what banks use.
2. Income capitalization
Annual rent ÷ cap rate. If rent is ₹4L/year and cap rate in your area is 4%, fair value is ₹1Cr.
3. Replacement cost
Land cost + construction cost + soft costs. Useful for new construction, less so for resale.
4. DCF
Project 10 years of net rental + terminal value, discount at your required return. Used by institutional investors.
5. Market sentiment
What three local brokers tell you. Use as a sanity check, not a primary number.
How AI helps
The Elevatools Property Intelligence tool blends all five for a quick estimate — always cross-check before transacting.
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