Wednesday, 8 January 2014

Weightings for the Cadastral Value of Buildings in Spain

Coefficients for the Value of Buildings in Spain

Antiquity and Condition

Seven specific weightings are used in the valuation of the land, but for the valuation of buildings we use only two: 'H' and 'I'. The scope of both coefficients should be defined in the Statement of Values.

Coefficient H: Antiquity

The value of a building should be corrected by applying a coefficient that weights its antiquity and considers the predominant building use and the construction quality. The calculation of this coefficient requires all following parameters:
  • t: full years since the finishing of the construction, reconstruction or complete rehabilitation works, until January 1 of the year following the approval of the Statement of Values
  • u: predominant building use, which can be Use 1 (residential, offices and landmark buildings), Use 2 (non-manufacturing industrial, commercial, sportive, leisure, hospitality, touristic, health, charity, cultural and religious) or Use 3 (factories and entertainment)
  • c: construction quality, which can adopt values between 1 (best quality) and 9 (worst quality).

H can adopt values between 0.17 (buildings in which 't' is 90 years or more, 'u' is Use 3 and 'c' is 7, 8 or 9) and 1 (buildings in which 't' does not exceed 4 years, regardless the value of 'u' and 'c').

Coefficient I: Condition

Coefficient 'I' can adopt the following values, depending on the condition of the building:
  • 1.00 if the condition is normal (buildings which, despite their age, do not require major repairs)
  • 0.85 if the building has permanent faults, but not compromising normal living conditions or stability
  • 0.50 if the condition is deficient (buildings needing repairs of some importance, in which normal living conditions or stability are compomised)
  • 0.00 if the building is a ruin (manifestly uninhabitable buildings, or in legally declared state of ruin).

Valuation of Buildings in Spain

Daniel Trujillano, Architect

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