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

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.

Daniel Trujillano, Architect

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

Property Valuation Reports in Spain

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Architect Daniel Trujillano

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Antiquity Certificates for Buildings in Andalusia

Video 04: Antiquity Certificates for Statement of Finished Buildings

Architect Daniel Trujillano

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Antiquity Certificates for Buildings in Spain

Weightings for the Cadastral Valuation of Land and Buildings in Spain

Weightings for the Valuation of Land and Buildings in Spain

Appreciation, Depreciation and Compatibility

Properties have certain characteristics that affect both the land and the building, so the weightings related to those characteristics should be applied to the value of both. These coefficients are:

• coefficient J: functional depreciation or inadequacy, applicable in cases of improper construction, design, installation or use (0.80)
• coefficient K: dwellings and shops considered interior, applicable in cases where all windows are located around courtyards (0.75)
• coefficient L: properties affected by singular conditions, such as being part of officially declared historical or artistic environments, or being included in special protection planning, applicable unless the complete demolition is allowed (0.70 for total protection, 0.80 for structural protection, or 0.90 for environmental protection)
• coefficient M: properties affected by extrinsic special situations, such as future roads, lack in urban planning definition, expropriation, land subdivision or compensation procedures, or out-of-planning building use, applicable while such situations persist, which must be justified every year (0.80 unless the special situation has already been taken into account in the Statement of Values)
• coefficient N: economic depreciation or appreciation, applicable only when justified in the Statement of Values, and only if approved by the Technical Territorial Board of Urban Properties Coordination (between 1 and 1.8 for apprecitation situations, and 1 in depreciation situations).

The scope of the coefficients must be defined in the Statement of Values. If two or more coefficients appear to be applicable, only one will be allowed, unless one of them is J or N, which are compatible between them and with any other. In any other concurrency case, the coefficient to select will be the one which causes greater decrease in value. While valuating undeveloped land and in cases of land valuation using unit values, the application of coefficient M is incompatible with the application of coeficient F (temporary building prohibition).

The coefficient of economic depreciation of appreciation

Coefficient N, of economic appreciation or depreciation, is applied to adapt the results to the reality of the real estate market, by assessing over-pricing or under-pricing cases within certain specific areas, which can be defined by considering building types or building uses. Over-pricing cases can be caused by:

• high demand
• absence of similar products
• high quality construction features.

And under-pricing cases can be caused by:

• low demand
• product obsolescence.

Coefficient N can be applied in order to meet different market situations within a single property. It's compatible with any other coefficient which may be considered applicable to the property.

Daniel Trujillano, Architect

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

Property Valuation Reports in Spain