Determinants of collector rate: an innovative approach

Abstract

Land valuation is the process of assessing the characteristics of a given piece of land. The process may be described as a carefully considered estimation of the worth of land or property based on experience and judgment. Land prices within monocentric city typically decline from the centre to the urban periphery. More complex patterns are observed in polycentric cities like Bhopal where CBD cannot be defined easily. City is growing along the regional connectivity corridors. A discrete jump in land value can occur across the areas which behave like a focal point. The study of National Housing Bank (NHB) for Residex notice Bhopal as a city having second most accelerating residential price during 2010-2011 just after Chennai. The study attempts to explain the price variability in terms of various functional characteristics of determinants. It was undertaken to analyze the selected determinants of residential land values and the strength of the different factors contributing to land value variations in Bhopal, MP since in an urban area, the property values are a function of physical, environmental and psychological factors. The study explored the relative contribution of some of these factors on residential property values. One of the quantifiable attributes of these factors is proximity. Proximity of amenities to the particular property has revealed a range of influences on its property values. The study employs the determinants of distance to city centre, physical attributes, major transportation facilities, land use and environment factors at city level to find its correlation with land value.