Mumbai University > CIVIL > Sem 7 > Quantity survey Estimation and valuation

Marks: 5 M

Year: May 2014, Dec 2013

Depreciation:

1. This is a physical loss in the value of property due to its use, life, wear $ tear, decay, etc.
2. Depreciation depends on its original condition, Quality of maintenance and mode of use.
3. This is variable according to the age of the property. More the age, more will be the amont off depreciation.

4. There are different methods by which the amount of depreciation can be calculated.

   Obsolescence:

5. The loss in the value of property due to change of design, fashion, in structure of others, change in utility, demand and also specific detrimental influences.

6. Obsolescence depends on normal progress in the arts, inadequacy to present or growing needs etc.
7. This is not dependent on age of the building. A new building may suffer in the usual rent due to Obsolescence.
8. At present there is no method of calculation of obsolescence.