Architect in Spain: values for land

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.

Daniel Trujillano, Architect

http://www.arquitectotrujillano.com/valuation/home.html

Property Valuation Reports in Spain

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.

Valuation Reports for Buildings in Spain