Architect in Spain: value of building

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).

Daniel Trujillano, Architect

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

Property Valuation Reports 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.