Tuesday, 22 October 2013

Cadastral Valuation Standards in Spain (I)

Technical Standards for Cadastral Valuation in Spain (I)

Module M. Market Value. Definition of Land.

The text of Spanish Royal Decree 1020/1993 contains the Technical Standards for Cadastral Valuation and the Standards Table for Land and Construction Values. Both are used to determine the Cadastral Value of Urban Real Estate in Spain. Technical Standards are a set of concepts, rules and criteria used for the valuation of urban nature assets. The Standards Table is the set of rules, criteria and core values used to calculate the values ​​of land and buildings in massive valuation proceedings. The Cadastral Value of urban nature assets is contained in the Urban Real Estate Cadastre, and it's composed of the value of the land and of the buildings, if any.

Value Module M

Spanish Royal Decree 1020/1993 defined a Value Module M which was supposed to be approved by the Ministry of Economy and Finance, and its purpose was to serve as a basis for the valuation of land and buildings. In 2005, Spanish Order EHA/1213/2005 set module M at 1,000 euros per square meter. That is the value of Module M which is still considered current.

The Market Value

The Market Value is established locally or, if the local market is tight, through a study of the provincial or regional market. The Market Value is the basis for determining :
  • the values ​​in relation with the street, the area or the place
  • the scope in which coefficient N is applicable.

Cadastral Value can never exceed the Market Value.

Definition of Land

For the purposes of its definition as urban property, all following concepts are considered Land:
  • urban land
  • developable land
  • land with scheduled development
  • land without scheduled development, since the time an Urban Action Program is approved
  • land which counts with paved paths, sidewalks, sewer, water supply, electricity supply and street lighting
  • land occupied by buildings of urban nature
  • land obtained by division against current agricultural legislation, provided that such division distort its agricultural use and without any alteration on the rustic nature of the land for other purposes than cadastral.

Valuation of Buildings in Spain

Daniel Trujillano, Architect

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