Schedule of Values for Land and Buildings in Spain (I)
Massive Valuations of Land and Buildings. Modulation. Impact Values.
Conducting massive valuations requires a mechanical procedure which can be easily adapted to computer software means. In Spain, this procedure starts with the definition of homogeneous economic areas considering land and buildings. Each area is assigned with:
- a Basic Impact Module for the land (MBR)
- coefficients for each building use
- a Basic Building Module (MBC)
- in areas where the land is valued by Unit Value, a range of Unit Values (VU).
Homogeneous economic areas, in both land and buildings, delimit geographical areas where the Real Estate Market has some similarity in characteristics, which allows the modulation of its behaviour. Normally, each city has a single homogeneous economic area, but a city can be composed of several areas if it has different geographic locations associated to different average market values.
Modulation of Values
The calculation of the Sale Value of the real estate product (VV) should consider the following factors:
- the Impact Value of the land (VR), in euros per square meter of Gross Floor Area
- the Construction Value (VC), in euros per square meter of Gross Floor Area
- the Location Factor (FL), which evaluates differences in value associated to similar property products because of their location, constructive features and local social-economic circumstances affecting the real estate industry.
The Basic Impact Module of the land associated to different homogeneous economic areas (MBRi) is obtained from Module M and a land value, Fs. In 2013, the General Directorate of Cadastre assigned impact values ranging from 37.80 euros per square meter, for MBR-7, to 1,700.00 euros per square meter, for MBR-1.
Impact Values of the Land
After completing the identification of each homogeneous economic area of the land, the Basic Impact Value in each polygon (VRB) is obtained from the MBRi assigned to the area. Every Statement of Values should include Impact Values in Polygon (VRB) and in Street (VRC), and also Unit Values (VU) for areas where the land can not be valuated by Impact Value.
Daniel Trujillano, Architect
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