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

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