Tuesday, 7 January 2014

Cadastral Valuation of Buildings in Spain

Valuation of Buildings in Spain

Gross Floor Area. Replacement Value and Current Cost. Massive Valuation.

The assignment of a homogeneous economic zone involves the assignment of a Basic Construction Module or MBC ('Módulo Básico de Construcción'). MBC is defined in euros per square meter and it should be implemented by the appropriate coefficient depending on the type of construction. The value of a building is the result of multiplying its Gross Floor Area by the Unit Value and by all applicable weightings.

Calculation of the Gross Floor Area

In order to calculate the value of a building, we define the Gross Floor Area as the area included within the outer perimeter, considering as part of the perimeter, if any, the axes lines of the party walls, and deducing the area occupied by courtyards. Covered outdoor spaces (balconies, terraces, porches and similar spaces) are computed at 50 per cent of its area, unless they are closed in three of its four orientations, in which case they are counted at 100 per cent. If the building use is residential, spaces where the height is less than 1.50 meters do not count at all.

Replacement Value and Current Cost

When we value the buildings we should use the Replacement Value, calculating its Current Cost and taking into account:
  • building use
  • building quality
  • historical and artistic value
  • antiquity
  • condition
  • other circumstances, able to depreciate the value after the real estate market relevance.

Current Cost is defined as the sum of the following concepts:
  • the performance cost, including the profit of the builder
  • all professional fees
  • all taxes affecting the building process.

Massive Valuation of Buildings

All buildings should be classified in order to enable Massive Valuations. However, if the special characteristics of a building permit no identification with any of the established types, or assimilation into any of the typologies, its valuation will have to be singled, by using the valuation method provided by the Statement of Values.
Valuation of Buildings in Spain

Daniel Trujillano, Architect

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