How is building depreciation calculated in Kerala?

Kerala follows the Straight Line Method at 1.5% per year for concrete buildings, as per Section 28B/28C of the Kerala Stamp Act, 1959. The maximum depreciation is capped at 75%, meaning buildings always retain at least 25% of their gross value regardless of age.

Is this valuation certificate valid for SBI or other bank loans?

This tool generates certificates following the official Section 28B/28C format required for property registration. For estimation purposes, it's suitable for all banks. However, for high-value loans (typically above ₹50 lakhs), banks like SBI, HDFC, and others may require a signature from an approved/empaneled valuer. This tool helps you prepare the document, but official certification may be needed.

What CPWD rates should I use for valuation?

Use the CPWD (Central Public Works Department) Plinth Area Rates from the current calendar year. For 2026: RCC Residential is ₹2,340/sq.ft, Load Bearing is ₹1,890/sq.ft, Commercial is ₹2,650/sq.ft. These rates are updated annually by CPWD and are the standard reference for stamp duty calculations.

Is this tool free and secure?

Yes, K-First Valuation Tool is 100% free, requires no login, and processes all data locally on your device. Your property details never leave your browser. The generated PDF has no watermarks and is ready for direct use.

📋 Valuation Certificate Generator

Professional tool for Kerala property valuation under Section 28B/28C • 2026 CPWD Rates

⚠️ Liability Disclaimer: For Estimation Only (Click to Read)

This tool provides estimates based on general algorithms. It does NOT constitute professional engineering advice. Structures must be verified by a licensed engineer per IS Codes. By using this tool, you agree to indemnify K-First against any financial losses.

Certificate Builder

Fill details below • Live preview updates automatically

🎨 Font & Style Settings Optional

Heading Font

Heading Size (pt)

Body Font

Body Size (pt)

👤 Valuer Information

Valuer Name

Valuer Address

Designation

Sub Registry Office

Date of Inspection

🏠 Property Owner Details

Owner Name

Owner Address

Door No

Year of Construction

Age of Building (Years)

Auto-calculated • Used for 1.5% per year depreciation

🧮 Valuation Calculation

Area in Square Meters (m²)

📏 Area in ft²: 0

CPWD Rate (₹/m²)

Cost Index

Rate per ft² (Before Depreciation)

💰 Computed: ₹0/ft²

Computed (₹/ft²)

Adjusted (₹/ft²)

💡 Leave adjusted empty to use computed. Enter custom value for structural issues.

Depreciation Method

📉 Kerala Standard: 1.5% per year straight-line (max 75%)

Depreciation is calculated on total cost, not on rate

📝 Additional Details

Building Description

Include any remarks about rate adjustments here

Place

Certificate Date

💡 Tip: In print dialog, disable headers/footers for clean output

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Valuation Certificate submitted before the Sub Registrar

(Under Section 28-C of the Kerala Stamp Act, 1959)

Name and address of the valuer	:

Designation	:
Sub Registry Office	:
Date of Inspection	:
Name and Address of Owners	:

Door No	:
Year of Construction	:
Age of the Building	:

Rate per Sq.m As per CPWD rates.	Rate per Sq.ft	Cost Index	Rate per Sq.ft applying Cost Index (after depreciation)	Area of the Building (in Sq.ft)	Net Value (in Rupees) After Depreciation.

I hereby certify that the information furnished above is true to the best of my knowledge.

Place:

Date:

____________________
Signature of Valuer

Official Rate Reference (2025-2026)

Sources used for calculation. Cite these for verification.

Component	Base Rate	Per Sq.ft	Authority / Source	Verification
RCC Framed Structure (Residential)	₹24,500 / m²	₹2,277 / sq.ft	CPWD PAR 2025 (Page 42)	Govt Source
Load Bearing / Low Cost Housing	₹19,300 / m²	₹1,793 / sq.ft	CPWD PAR 2025	Govt Source
Kerala Cost Index (Zone-wise)	133% - 141%	Multiplier	Kerala PWD Circular 2022	Govt Source View District List
Depreciation Rate	1.5% per year	Max 75%	Section 28B/28C, Kerala Stamp Act 1959	Statutory

Citation: CPWD Plinth Area Rates 2025 (Central Public Works Department), Kerala PWD PRICE Software Circular 2022 (DSR 2018 Indices). Cost indices vary by district (e.g., Alappuzha: 141.53%, Kasaragod: 133.05%). Final valuation requires site-specific adjustment.

📄

Looking for a blank template? Download the raw Section 28-C Format from our Library.

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About This Tool

Property Valuation Formulas

Gross Building Value

Plinth Area × CPWD Rate

Total replacement cost before any depreciation.

Where: Plinth Area = Built-up area in sq.ft, CPWD Rate = Current year CPWD plinth area rate (₹/sq.ft)

Depreciation Amount

Gross Value × (Age × 1.5%)

Reduction in value based on building age using Straight Line Method at 1.5% per year.

Where: Gross Value = Total replacement cost, Age = Building age in years, 1.5% = Annual depreciation rate per Section 28B

Maximum Depreciation Cap

Depreciation ≤ 75% of Gross Value

Total depreciation is capped at 75% regardless of building age. Buildings over 50 years still retain 25% value.

Where: 75% = Maximum depreciation cap as per Kerala Stamp Act

Net Depreciated Value

Gross Value - Depreciation

Final building value after applying capped depreciation.

Where: Gross Value = Total replacement cost, Depreciation = Min(Age × 1.5%, 75%) × Gross Value

Worked Examples

Calculate Valuation for 10-Year-Old House

1000 sq.ft RCC residential building constructed in 2016

Calculate Gross Building Value

1000 sq.ft × ₹2,340/sq.ft = ₹23,40,000

Calculate depreciation percentage

10 years × 1.5% = 15% depreciation

Check against 75% cap

15% < 75%, so we use 15%

Calculate depreciation amount

₹23,40,000 × 15% = ₹3,51,000

Calculate net value

₹23,40,000 - ₹3,51,000 = ₹19,89,000

Result: ₹19,89,000 (Net Depreciated Value)

Calculate Valuation for 60-Year-Old Building (Max Depreciation)

800 sq.ft load bearing structure showing maximum depreciation cap

Calculate Gross Building Value

800 sq.ft × ₹1,890/sq.ft = ₹15,12,000

Calculate raw depreciation

60 years × 1.5% = 90% (exceeds cap!)

Apply 75% maximum cap

Capped at 75% depreciation

Calculate capped depreciation amount

₹15,12,000 × 75% = ₹11,34,000

Calculate net value

₹15,12,000 - ₹11,34,000 = ₹3,78,000

Result: ₹3,78,000 (Minimum 25% retained)

⚠️

For high-value bank loans (typically > ₹50L), banks may require certification from an approved valuer. This tool provides estimates in the official format.

📍

Land value is calculated separately based on Fair Value notification from the Registration Department. This tool calculates BUILDING value only.

📅

CPWD rates are updated annually. Verify you're using current year rates from the official CPWD schedule.

This free tool generates valuation certificates compliant with Section 28B/28C of the Kerala Stamp Act, 1959. It uses the official CPWD rates.

Features: Live preview • Instant PDF download • 2-page output (Official + Project Sheet) • No watermarks • No sign-up required.