India’s Grade A Commercial Real Estate — The National Valuation Context

One Valuation Framework. City-Specific Market Inputs.

A Section 34AB Category I commercial valuation does not mean that one rental rate or yield can be applied throughout India. The valuation framework remains structured, while the market evidence must reflect the relevant city, micro-market, asset quality, tenancy, occupancy and transaction environment.

For a commercial property, the income approach and yield-capitalisation methodology may require examination of market rental evidence, lease terms, vacancy, operating considerations and an appropriate yield or capitalisation rate. Comparable transactions and other relevant valuation evidence may also be considered according to the assignment.