Price Analysis

Price Analysis

Price analysis involves the breakdown of a price to a unit figure. Usually per square metre or square foot of accommodation or per hectare or even square metre of land. The price with suitable adjustment for various differences, is then applied to the valuation problem.

Units of comparison

Prices may be derived for the following units, according to the type of property:

1. Square metre or square foot for commercial and industrial premises.2. Square metre for building sites.3. Hectares (Acres) for larger sites.4. Price per plot or residential unit for building sites.5. Price per unit of turnover for some specialist properties such as petrol stations where rent can be expressed as x pence per gallon.6. Prices per hectare, inclusive of the value of the buildings, for agricultural units.

----The basis of measurement must be consistent. Measurement of building can be of gross internal area, including corridors and other unproductive space, or of reduced cover area, excluding corridors, toilets etc. Office premises are measured net of toilets, stairs etc, and factories usually to gross internal space.


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