Wednesday 8 January 2014

Weightings for the Cadastral Value of Buildings in Spain

Coefficients for the Value of Buildings in Spain

Antiquity and Condition


Seven specific weightings are used in the valuation of the land, but for the valuation of buildings we use only two: 'H' and 'I'. The scope of both coefficients should be defined in the Statement of Values.

Coefficient H: Antiquity

The value of a building should be corrected by applying a coefficient that weights its antiquity and considers the predominant building use and the construction quality. The calculation of this coefficient requires all following parameters:
  • t: full years since the finishing of the construction, reconstruction or complete rehabilitation works, until January 1 of the year following the approval of the Statement of Values
  • u: predominant building use, which can be Use 1 (residential, offices and landmark buildings), Use 2 (non-manufacturing industrial, commercial, sportive, leisure, hospitality, touristic, health, charity, cultural and religious) or Use 3 (factories and entertainment)
  • c: construction quality, which can adopt values between 1 (best quality) and 9 (worst quality).

H can adopt values between 0.17 (buildings in which 't' is 90 years or more, 'u' is Use 3 and 'c' is 7, 8 or 9) and 1 (buildings in which 't' does not exceed 4 years, regardless the value of 'u' and 'c').

Coefficient I: Condition

Coefficient 'I' can adopt the following values, depending on the condition of the building:
  • 1.00 if the condition is normal (buildings which, despite their age, do not require major repairs)
  • 0.85 if the building has permanent faults, but not compromising normal living conditions or stability
  • 0.50 if the condition is deficient (buildings needing repairs of some importance, in which normal living conditions or stability are compomised)
  • 0.00 if the building is a ruin (manifestly uninhabitable buildings, or in legally declared state of ruin).

Valuation of Buildings in Spain














Daniel Trujillano, Architect

Tuesday 7 January 2014

Cadastral Valuation of Buildings in Spain

Valuation of Buildings in Spain

Gross Floor Area. Replacement Value and Current Cost. Massive Valuation.


The assignment of a homogeneous economic zone involves the assignment of a Basic Construction Module or MBC ('Módulo Básico de Construcción'). MBC is defined in euros per square meter and it should be implemented by the appropriate coefficient depending on the type of construction. The value of a building is the result of multiplying its Gross Floor Area by the Unit Value and by all applicable weightings.

Calculation of the Gross Floor Area

In order to calculate the value of a building, we define the Gross Floor Area as the area included within the outer perimeter, considering as part of the perimeter, if any, the axes lines of the party walls, and deducing the area occupied by courtyards. Covered outdoor spaces (balconies, terraces, porches and similar spaces) are computed at 50 per cent of its area, unless they are closed in three of its four orientations, in which case they are counted at 100 per cent. If the building use is residential, spaces where the height is less than 1.50 meters do not count at all.

Replacement Value and Current Cost

When we value the buildings we should use the Replacement Value, calculating its Current Cost and taking into account:
  • building use
  • building quality
  • historical and artistic value
  • antiquity
  • condition
  • other circumstances, able to depreciate the value after the real estate market relevance.

Current Cost is defined as the sum of the following concepts:
  • the performance cost, including the profit of the builder
  • all professional fees
  • all taxes affecting the building process.


Massive Valuation of Buildings

All buildings should be classified in order to enable Massive Valuations. However, if the special characteristics of a building permit no identification with any of the established types, or assimilation into any of the typologies, its valuation will have to be singled, by using the valuation method provided by the Statement of Values.
Valuation of Buildings in Spain














Daniel Trujillano, Architect

Weightings for the Cadastral Valuation of the Land in Spain

Coefficients for the Value of the Land in Spain

Definition and Application


While calculating the value of the land we should apply, where appropriate, the following weightings:
  • Coefficient A: for plots with two or more facades, shaping one or more corners (1.10 for two facades, 1.15 if three or more)
  • Coefficient B: for plots where the length of the facade is less than the minimum allowed by the urban planning (the higher value between 0.60 and L/LM, where L is the actual length of the facade and LM is the minimum length allowed by the urban planning or, where appropriate, by the Statement of Values)
  • Coefficient C: for plots irregular in shape, if this circumstance prevents or hinders obtaining the exploitation assigned by the urban planning (0.85)
  • Coefficient D: for plots with excess of depth in relation with the depth which allows to complete the buildable Gross Floor Area allowed by the urban planning or, if applicable, whith the depth which is considered normal in the city, applicable where the assigned building typology is closed block (1/n + 1, where n is the allowed number of storeys)
  • Coefficient E: for plots where the area is different than the minimum size allowed by the urban planning or, where appropriate, by the local custom, applicable where the assigned building typology is open building (0.80 if S/SM is less than 1, 0.70 if S/SM is bigger than 2, and 1.00 in all other cases, where S is the area of the plot and SM is the allowed minimum area)
  • Coefficient F: for plots where the building activity is not allowed, due to temporary or partial circumstances in relation with the urban planning or with the law, applicable to the affected part of the undeveloped plot while that condition persists, and provided that has not already been considered in the Statement of Values (0.60)
  • Coefficient G: for plots assigned for the construction of houses under official protection, or under other public protection arrangements, applicable to undeveloped plots (0.70).


Application of the Coefficients for the Value of the Land

Since the Impact Value already considers most of the circumstances conditioning the value of the real estate product, when we use the Impact Method for the valuation of the land we can only apply Coefficients A and B. However, when we use the Unit Method, all coefficients are applicable, where appropriate as a result of those features of the land that make it specific within the overall real estate market. In any case, the scope of the weightings should be defined in the Statement of Values.
Property Valuation Reports in Spain














Daniel Trujillano, Architect

Friday 3 January 2014

Cadastral Valuation of the Land in Spain (III)

Land Values in Spain (III)

Unit Value. Undeveloped, Over-built and Under-built Plots. Massive Valuations.


Whenever we find an Impact Value we should calculate the corresponding Unit Value, in euros per square meter of land, by aggregating the results of multiplying every Impact Value by the corresponding buildable Gross Floor Area. The buildable floor area to consider must be one between the following concepts:
  • the buildable Gross Floor Area allowed by the urban planning
  • the average value between all buildable GFA applicable to the street, the street section, the zone or the place
  • the buildable GFA applicable to the cadastral plot
  • in absence of the above values, 1 sq. meter per sq. meter of cadastral plot.

The use of any different value of buildable GFA should be authorized by the Values Statement.

Valuating Undeveloped Plots

Undeveloped plots can be valuated by two different methods:
  • Impact Method (VRG), based on buildable square meters
  • Unit Method (VUG), based on square meters of land.

Both methods shoud use as many correction factors as applicable.

Valuating Under-built Plots

Under-built plots can be valued by applying the Impact Method, considering either the buildable GFA or the actually built GFA. If we consider the built GFA, the result can be increased by evaluating the remaining building right, according to the procedure established by the Values Statement. Again, both methods shoud use as many correction factors as applicable.

Valuating Over-built Plots

When we value plots where the Gross Floor Area exceeds the buildable value assigned by application of the Values Statement, the Impact Value can be applied to the actual GFA, and then using correction factors.

Massive Valuations

In order to make Massive Valuations possible, each polygon should be associated to a Homogeneous Economic Zone, to an Impact Basic Module (MBR) and to a range of coefficients or, where appropriate, a range of Unit Values.
Property Valuation Reports in Spain














Daniel Trujillano, Architect