Saturday, 28 December 2013

Cadastral Valuation of the Land in Spain (II)

Land Values in Spain (II)

Basic Impact Value

Normally, we value the land -built or unbuilt- at the Impact Value, in euros per square meter of potential or actual floor area. However it can also be valued at the Unit Value -euros per square meter of land- in the following cases:
  • when advisable due to the small size of the urban piece of land, the small population or the low activity in the real estate market, whether those circumstances are justified in the Values Statement
  • when the land belongs to residential developments in open-building style, with single-family typology
  • when the land is associated to communal building uses -sports, health, religious, etc.-
  • when the land is associated to territorial general systems
  • when the use of the Impact Value is inadvisable due to circumstances referred to in the Values Statement
  • when the land is associated to industrial building use and there is uncertainty about the buildable Gross Floor Area, or the buildable floor area is calculated from the size of the plots or the volume of the buildings
  • when the land is not built and it's required due to the particular market or urban planning conditions.

In cities where the urban planning is adapted to the the Spanish Law on Land Regime and Urban Planning ('Ley sobre régimen del suelo y ordenación urbana'), the definition of Unit Values should consider the exploitation.

Basic Impact Value of the Land

Basic Impact Value of the land in each Polygon, Street, Street Section, Zone or Place is given by the Residual Method, deducting from the value of the real estate product the sum of the following items:
  • the Construction Cost of the existing building
  • other production costs
  • the profit of the development.

Propery Valuation Reports in Spain

Daniel Trujillano, Architect

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