The Corner And The Park: Two Premiums, Two Different Risks

A corner plot and a park facing each add about ten per cent to a South Delhi floor. They are not the same ten per cent, and if you are paying for both on one property they should not be underwritten the same way.

Two features add roughly the same premium to a South Delhi floor. A corner plot adds about ten per cent. A park-facing floor adds about ten per cent. Buyers often treat them as equivalent. They are not.

The corner is structural

A corner plot has open frontage on two sides. That can mean light and air from a second direction, another aspect for rooms along that face, and a better approach. It is a property of the plot. In a future rebuild, the road frontage remains.

The park facing is contingent

An open view and quiet are both real, and both worth paying for. But the land in front of you belongs to somebody else. In many South Delhi cases that somebody is the city, which may be a more durable arrangement than a vacant private plot. The premium nevertheless exists because the park is a park, and it should be assessed against the legal status and continuing use of the land in front.

When the distinction matters

It matters when open land is not actually a notified or maintained park; when a buyer is paying both premiums on one property; and when the owner intends to redevelop. A corner premium is attached to the plot. A park-facing premium depends on the adjacent land use continuing.

What to do

Find out what the open land in front of the property legally is before paying the premium. Confirm the relevant land-use and planning position for the specific site. Both premiums may be real; understanding which risk you are buying is what tells you how confidently to underwrite it.

Read: The Floor Premium Index

Grey Beard Real Estate

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