Monday, 5 May 2014

Coordination in the Cadastral Valuation of the Urban Real Estate in Spain

Coordination in the Cadastral Valuation of Properties in Spain

Homogeneous Economic Areas. Statements of Values. Property Market Research.

In Spain, Technical Territorial Boards of Urban Real Estate Coordination should, in their geographical coverage, make a delineation of homogeneous economic areas of land and buildings. For this, they must apply the Territorial Managers within their scope, to perform previous studies, which should include:
  • data identifying the areas, and blueprint pointing the perimeter
  • construction costs associated to the most common building types
  • selling price associated to those building types
  • estimation of values for the land
  • economic data bearing on Real Estate activity.

When the previous studies are ready, Technical Territorial Boards must propose coordinated sets of values, which must include MBR modules and Bands of Coefficients, or VU modules for homogeneous economic areas of land and MBC modules for the areas of buildings. Coordinated Values Proposals should be submitted to the High Commission of Urban Real Estate Coordination, which must establish national-level criteria, definitely assigning MBR, VU and MBC modules to each municipality.

Statements of Values

Statements of Values are administrative documents that list the values of land and buildings, and the correction coefficients to be applied in each territorial scope. The statements are made by Territorial Managers of the Centre for Cadastral Management and Tax Cooperation, taking into account urban planning and cadastral valuation regulations, and also studies and analysis of the Property Market. Each Statement of Values should include the following separate documents:
  • analysis and findings of Market Research, and results obtained by applying them to a significant number of properties, in order to verify the relationship between cadastral values and market values
  • catalogs of buildings and urban construction.

Urban Real Estate Market Research

The Center of Cadastral Management and Tax Cooperation should establish the criteria and the minimum content for the Real Estate Studies which should serve as a basis for drafting Statements of Values. In general, the territorial scope of those studies should be municipal, but it can also be supra-municipal if it's convenient upon the circumstances. Conducting Market Studies has the following purposes:
  • investigating economic data associated to urban real estate market
  • collecting and analysing such data
  • drawing some conclusions about the market status.

Property Valuation Reports in Spain

Daniel Trujillano, Architect

PD03. Certificates of Antiquity in Andalusia

Thursday, 1 May 2014

Schedule of Cadastral Values for Land and Buildings in Spain (II)

Schedule of Values for Land and Buildings in Spain (II)

Schedule of Bands. Basic Module. Value of Buildings. Inventory.

The impact values of the land should be considered, for coordination, as the product of MBR corresponding to the homogeneous economic area, by a percentage factor. This factor should be between the minimum and the maximum limits set out int he Schedule of Bands, depending on the land use.

Basic Building Module

The Basic Building Module corresponding to different homogeneous economic areas (MBCi) is obtained from Module M and a Building Factor Fc. MBCi values may be increased by agreement of the Real Estate Coordination Comission and according to market analysis carried out by the General Directorate of Cadastre, by applying coefficients. The current values assigned by the General Directorate of Cadastre for the MBCi are ranging from 400 euros per square meter, correspondig to MBC-7, to 700 euros per square meter, corresponding to MBC-1.

Value of Buildings

Once the identification of each homogeneous economic area of buildings is defined, and each Basic Module MBC is assigned, the value of the buildings is obtained by applying a coefficient to such Module. This coefficient must be selected by considering:
  • its building use
  • its class
  • its modality
  • its category.

The coefficient is obtained from the Schedule of Coefficients for Building Values. While defining a building, if there are units in which the building use to which they are intended does not correspond to the building type (i.e. offices or shops in dwellings), the applicable value for these units must be the one that fits with their building type.

Inventory of Urban Buildings and Constructions

The territorial offices of the Center of Cadastral Management and Tax Cooperation should develop an Inventory of Urban Buildings and Constructions in their geographical coverages, which must be coordinated by the Territorial Technical Board, in accordance with established typologies in the Schedule of Coefficients for Building Values. Such Inventory must be performed according to the instructions issued by the General Directorate, after investigation by the High Commision of Urban Coordination.
Valuation of Buildings in Spain

Daniel Trujillano, Architect