Saturday 28 December 2013

Cadastral Valuation of the Land in Spain (II)

Land Values in Spain (II)

Basic Impact Value


Normally, we value the land -built or unbuilt- at the Impact Value, in euros per square meter of potential or actual floor area. However it can also be valued at the Unit Value -euros per square meter of land- in the following cases:
  • when advisable due to the small size of the urban piece of land, the small population or the low activity in the real estate market, whether those circumstances are justified in the Values Statement
  • when the land belongs to residential developments in open-building style, with single-family typology
  • when the land is associated to communal building uses -sports, health, religious, etc.-
  • when the land is associated to territorial general systems
  • when the use of the Impact Value is inadvisable due to circumstances referred to in the Values Statement
  • when the land is associated to industrial building use and there is uncertainty about the buildable Gross Floor Area, or the buildable floor area is calculated from the size of the plots or the volume of the buildings
  • when the land is not built and it's required due to the particular market or urban planning conditions.

In cities where the urban planning is adapted to the the Spanish Law on Land Regime and Urban Planning ('Ley sobre régimen del suelo y ordenación urbana'), the definition of Unit Values should consider the exploitation.

Basic Impact Value of the Land

Basic Impact Value of the land in each Polygon, Street, Street Section, Zone or Place is given by the Residual Method, deducting from the value of the real estate product the sum of the following items:
  • the Construction Cost of the existing building
  • other production costs
  • the profit of the development.

Propery Valuation Reports in Spain














Daniel Trujillano, Architect

Friday 27 December 2013

Cadastral Valuation of the Land in Spain (I)

Land Values in Spain (I)

Polygon, Street, Street Section, Zone, Place and Plot


Polygon Values ​​are reference values​​. They represent the average circumstances of the polygon or the value of the average Plot defined in terms of urban planning parameters.

Types of Polygon Values

Spanish Royal Decree 1020/1993 considers two types of Polygon Values:
  • Basic Impact Value in Polygon, or VRB ('Valor de Repercusión Básico'), corresponding to the most characteristic property product or to the product as defined by the building use and building type defined by applicable urban planning
  • Basic Unit Value in Polygon, or VUB ('Valor Unitario Básico'), obtained by considering the buildable Gross Floor Area assigned to the average Plot by the applicable urban planning.

When there is no Impact Value, the Unit Value is set according to urban circumstances and  market status.

Values in Street, Street Section, Zone and Place

The values in Street, Street Section, Zone and Place are used to calculate the individual values applicable to each Plot. R.D. 1020/1993 considers two types of values in Street, Street Section, Zone or Place:
  • Impact Value in Street, Street Section, Zone or Place, also called VRC ('Valor de Repercusión en Calle'), obtained in response to the urban characteristics, by correction of the Basic Impact Value in Polygon (VRB)
  • Unit Value in Street, Street Section, Zone or Place, also called VUC ('Valor Unitario en Calle'), which is obtained from the detailed Impact Value in Street.

When we calculate the Impact Value in Street, Street Section, Zone or Place (VRC) we must consider the following circumstances:
  • location, with respect to different centers of attraction, according to the building uses
  • accessibility and public transport means, within the polygon and in relation to the rest of the city
  • urban development level and quality of urban services
  • real estate market dynamics, in terms of greater or lesser number of operations
  • specificity of supply or demand trend.

When we calculate the Unit Value in Street, Street Section, Zone or Place (VUC) we must use the buildable Gross Floor Area defined according to some of the following expressions:
  • buildable Gross Floor Area assigned by the urban planning for the Street, Street Section, Zone or Place
  • average value between all assigned buildable Gross Floor Areas
  • most frequent buildable Gross Floor Area assigned to the most representative buildings of the Street, Street Section, Zone or Place.

When there is no Impact Value, Unit Value in Street, Street Section, Zone or Place (VUC) is calculated by application of the Basic Unit Value in Polygon (VUB).

Plot Values

Plot Values are used to obtain the value of the land in particular pieces. We consider two types of Plot Values:
  • Impact Value in Plot, or VRP ('Valor de Repercusión en Parcela'), which is obtained from the Impact Value in Street, Street Section, Zone or Place (VRC), by applying all weighting factors that may apply
  • Unit Value in Plot, or VUP ('Valor Unitario en Parcela'), obtained from the Impact Value in Plot (VRP), by applying all weighting factors that may apply.

When there is no Impact Value, Unit Value in Plot (VUP) is obtained from the Unit Value in Street, Street Section, Zone or Place, by applying all weighting factors that may apply.
Property Valuation Report in Spain














Daniel Trujillano, Architect