Rules for the Valuation of Properties According ECO/805/2003 (IV)

Valuation Rules According ECO/805/2003 (IV)

Floor Areas used in the Valuation of a Property

In general, the floor area that must be used in order to calculate the value of a building in Spain is the floor area as checked by the valuer. However, the particular circumstances of a building may require using other floor areas:

• if it's not possible to check the floor area on-site, the area to use will be the lowest between the floor areas considered by the Cadastre and the Property Registry
• if it was possible only to check the Gross Floor Area or the Gross Internal Area without the floor area of the common parts, due to operational difficulties involved in checking all the floor area of the common parts, the area to use will also be the lowest one between the cadastral floor area and registry floor area with common parts, provided that the valuer considers that the proportion between the floor area finally used and the checked one is reasonable
• if the checked floor area of a building exceeds by more than 5 percent to the registry floor area or to the cadastral floor area, the adoption of the checked floor area will require to verify the adequacy to the applicable urban planning regulations
• if the checked floor area of an element of a building exceeds by more than 10 percent to the registry floor area or the cadastral floor area, the adoption of the checked floor area will require to verify the adequacy to the urban planning regulations
• if the building lacks of Statement of New Building entered in the Property Registry, the adoption of the checked floor area will also require to verify the adequacy to the urban planning regulations
• if the floor area of the private outdoor spaces for the exclusive use of the building exceeds by more than 15 percent of the total floor area thereof, the floor area of the outdoor spaces shall be measured separately and valued with a different unit price
• in the valuation of homes subject to public protection, for the purposes of calculating their maximum legal value, the floor area that should be adopted is the one contained in the Certificate of Qualification.

Architect Daniel Trujillano

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

Valuation Reports for Buildings in Spain

Rules for the Valuation of Properties According ECO/805/2003 (III)

Valuation Rules According ECO/805/2003 (III)

Market Value and Replacement Value. Checked Area and Computable Area. Comparable Properties. Urban Levels.

The Spanish Order ECO/805/2003 defines the Market Value (VM) as the price at which the property could be sold on the date of the valuation. In determining the Market Value is necessary to consider:

• that there is no prior relationship between seller and buyer
• that neither the seller nor the buyer holds any personal or professional interest in the transaction, excluding those associated with the cause of the contract
• that the public offering to the market occurs through a proper marketing strategy and with no inside information
• that the price of the property is consistent with the public offer and reflects a reasonable estimate relating to market conditions existing at the date of the valuation
• that the price does not include any taxes or marketing expenses.

Definition of Replacement Value (VR)

The Replacement Value (VR) can be gross or net. The Gross Replacement Value (VRB) is the sum of all the investment costs required to build, on the date of valuation, another property with the same characteristics (capacity, use, quality, etc.) but using current technology and materials. The Net Replacement Value (VRN) is the result of deducting from VRB the physical and functional depreciation of the property on the date of the valuation.

Checked Area and Computable Area

The Checked Area is the floor area as measured by the valuer. The Computable Area is the floor area used in the valuation.

Comparable Properties

Comparable properties are those that are considered similar to the property that is being valued, or appropriate to apply the homogenization, because of its location, use, type, size, antiquity, condition or other relevant physical characteristic.

The Urban Levels of the Land

For the purposes of the valuation, Spanish Order ECO/805/2003 classifies the land into two levels:

• level II: non-developable land
• level I: developable and developed land.

Architect Daniel Trujillano

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

Valuation Reports for Properties in Spain

Measuring Floor Areas in Spain – GFA and GIA

Gross Floor Area and Gross Internal Area in Spanish Buildings from Arquitecto Daniel Trujillano

Info00. Gross Floor Area and Gross Internal Area in Spain

(click to enlarge)

Architect Daniel Trujillano

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

Measurement Reports for Buildings in Spain

Video 00: Measurement of Floor Areas in Spanish Buildings

Architect Daniel Trujillano
http://www.arquitectotrujillano.com/measurement/home.html 
Measurement Reports for Properties in Spain

Measuring Floor Areas in Spain (II)

Measuring Floor Areas in Buildings (II)

GIA and GFA in Spanish Order ECO/805/2003

In Spain, Order ECO/805/2003, on Valuation Standards for Real Estate Properties, includes specific criteria for the measurement of Gross Internal Areas (GIA) and Gross Floor Areas (GFA) in buildings.

Gross Internal Area - GIA

According to the Order ECO/805/2003, GIA is the result of substracting from the floor area bounded by the perimeter defined by the inner face of the external wall of a building -or a building element- the following areas:

• the area occupied by all internal walls and partitions
• the area occupied by vertical structural elements
• the area occupied by pipes or ducts with horizontal section area greater than 100 square centimeters
• the floor area where clear height is smaller than 150 centimeters.

The floor area bounded by the perimeter defined by the inner face of external walls must include 50 per cent of the floor area of all private use covered outdoor spaces (terraces, balconies, drying rooms, porches, loading docks, overhangs, etc.), as measured along the horizontal projection of the roof.

GFA Excluding Common Parts

According to the Order ECO/805/2003, the Gross Floor Area Excluding Common Parts is the result of adding to the floor area delimited by the inner face of the external walls of a building -or element of a building- the following areas:

• 100 per cent of all area occupied by facades
• 50 per cent of all area occupied by sharecropping partitions, or partitions shared with other elements in the same building.

Again, the floor area bounded by the perimeter defined by the inner face of the external walls must include 50 per cent of all private covered outdoor spaces, as measured along the horizontal projection of the roof.

GFA Including Common Parts

According to ECO/805/2003, Gross Floor Area Including Common Parts includes the proportionate share which is result of the application of the associated sharing rate on the floor area of all common elements of the building.

Architect Daniel Trujillano

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

Bulding Measurement Reports in Spain