Architect in Spain: valuation standards

Technical Standards for Cadastral Valuation in Spain (II)

Definition of Construction. Land Delimitation. Valuation Polygons.

Spanish Royal Decree 1020/1993 is applied in the valuation of those constructions and buildings which, according to the Spanish Law on Land Regime and Urban Planning, must be subject to a license, with the exception of those that may be considered 'rustic nature constructions'.

Definition of Construction

Spanish R. D. 1020/1993 defines 'construction' as :

buildings in any case, even if they are transportable and although the land on which they are located does not belong to the owner of the construction
commercial or industrial facilities that are comparable to the concept of 'buildings' and not to the concept of machines or appliances, such as dams, tanks, loaders, etc.
development and improvement works and those made for the use of open spaces, like enclosures for markets, outdoor deposits, sport facilities, docks, parking areas and other areas annexed to constructions
all other buildings that are not expressly described as 'rustic nature constructions'.

Delimitation of Urban Nature Land

In each Spanish municipality there should be a Delimitation of the Land, which must be documented and submitted to the following procedures:

approval by the Real Estate Territorial Council
exposure to the public, after publication by edict.

Valuation Polygons

After the Land Delimitation derives the division of the Land in Valuation Polygons, according to the following criteria:

urban consistency, both for the calification of the land and per the type of constructions
administrative circumstances
market characteristics that facilitate the valuation
economic and social circumstances
other circumstances, duly justified in the Valuation Settings.

In addition to the listed criteria, in municipalities whose planning is adapted to the consolidated text of the Spanish Law on Land Regime and Urban Planning, the delimitation of polygons must consider:

distribution areas
urban land areas referred to further planning
sectors delimited by general planning on Scheduled Developable Land.

Daniel Trujillano, Architect

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

Property Valuation Reports in Spain

Technical Standards for Cadastral Valuation in Spain (I)

Module M. Market Value. Definition of Land.

The text of Spanish Royal Decree 1020/1993 contains the Technical Standards for Cadastral Valuation and the Standards Table for Land and Construction Values. Both are used to determine the Cadastral Value of Urban Real Estate in Spain. Technical Standards are a set of concepts, rules and criteria used for the valuation of urban nature assets. The Standards Table is the set of rules, criteria and core values used to calculate the values of land and buildings in massive valuation proceedings. The Cadastral Value of urban nature assets is contained in the Urban Real Estate Cadastre, and it's composed of the value of the land and of the buildings, if any.

Value Module M

Spanish Royal Decree 1020/1993 defined a Value Module M which was supposed to be approved by the Ministry of Economy and Finance, and its purpose was to serve as a basis for the valuation of land and buildings. In 2005, Spanish Order EHA/1213/2005 set module M at 1,000 euros per square meter. That is the value of Module M which is still considered current.

The Market Value

The Market Value is established locally or, if the local market is tight, through a study of the provincial or regional market. The Market Value is the basis for determining :

the values in relation with the street, the area or the place
the scope in which coefficient N is applicable.

Cadastral Value can never exceed the Market Value.

Definition of Land

For the purposes of its definition as urban property, all following concepts are considered Land:

urban land
developable land
land with scheduled development
land without scheduled development, since the time an Urban Action Program is approved
land which counts with paved paths, sidewalks, sewer, water supply, electricity supply and street lighting
land occupied by buildings of urban nature
land obtained by division against current agricultural legislation, provided that such division distort its agricultural use and without any alteration on the rustic nature of the land for other purposes than cadastral.