Estimate & Valuation

At Arya Associates, estimation and valuation are treated as integral components of the architectural process rather than isolated services. Accurate cost estimation provides clarity during planning and execution, while realistic property valuation supports informed financial and investment decisions. Our approach is based on a detailed understanding of construction methods, material specifications, prevailing market conditions, and regulatory requirements. By combining design knowledge with systematic estimation and valuation practices, we aim to deliver assessments that are practical, transparent, and dependable, helping clients manage costs effectively and understand the true value of their built assets.

Difference between Estimation and Valuation of Property

Estimation refers to the detailed calculation of the probable cost of construction of a building or project, based on drawings, specifications, quantities, materials, and prevailing rates. It helps in planning, budgeting, and cost control during execution.

Valuation refers to the assessment of the market value of a property at a particular point in time, considering factors such as location, usage, condition, age, demand, and legal aspects. It helps in understanding the financial worth of a property for sale, purchase, loan, or investment purposes.

Estimate (Means of Estimate / Cost of Construction)

Meaning:

Estimate is the total expected cost required to construct or prepare a house / building.

It includes:

  • Material cost
  • Labour cost
  • Contractor profit
  • Services (plumbing, electrical, etc.)
  • Contingencies
  • As per PWD / CPWD / Schedule of Rates

Purpose:

  • Used before construction or during construction
  • Banks use it to:
    • Decide loan amount
    • Release stage-wise payment

Simple line you can use:

Estimate shows how much money is required to construct the building.

Valuation (Market Value of Property)

Meaning:

Valuation is the present worth / value of the property after construction (or at any given date).

It considers:

  • Land value
  • Building value (with depreciation)
  • Location
  • Demand–supply
  • Access, amenities
  • Legal & planning status

Purpose:

  • Used after construction or for ready property
  • Banks use it for:
    • Mortgage
    • Loan security
    • Auction / recovery cases

Simple line you can use:

Valuation shows the current market value of the completed property.