Land Values in Spain (I)
Polygon, Street, Street Section, Zone, Place and Plot
Polygon Values are reference values. They represent the average circumstances of the polygon or the value of the average Plot defined in terms of urban planning parameters.
Types of Polygon Values
Spanish Royal Decree 1020/1993 considers two types of Polygon Values:
- Basic Impact Value in Polygon, or VRB ('Valor de Repercusión Básico'), corresponding to the most characteristic property product or to the product as defined by the building use and building type defined by applicable urban planning
- Basic Unit Value in Polygon, or VUB ('Valor Unitario Básico'), obtained by considering the buildable Gross Floor Area assigned to the average Plot by the applicable urban planning.
When there is no Impact Value, the Unit Value is set according to urban circumstances and market status.
Values in Street, Street Section, Zone and Place
The values in Street, Street Section, Zone and Place are used to calculate the individual values applicable to each Plot. R.D. 1020/1993 considers two types of values in Street, Street Section, Zone or Place:
- Impact Value in Street, Street Section, Zone or Place, also called VRC ('Valor de Repercusión en Calle'), obtained in response to the urban characteristics, by correction of the Basic Impact Value in Polygon (VRB)
- Unit Value in Street, Street Section, Zone or Place, also called VUC ('Valor Unitario en Calle'), which is obtained from the detailed Impact Value in Street.
When we calculate the Impact Value in Street, Street Section, Zone or Place (VRC) we must consider the following circumstances:
- location, with respect to different centers of attraction, according to the building uses
- accessibility and public transport means, within the polygon and in relation to the rest of the city
- urban development level and quality of urban services
- real estate market dynamics, in terms of greater or lesser number of operations
- specificity of supply or demand trend.
When we calculate the Unit Value in Street, Street Section, Zone or Place (VUC) we must use the buildable Gross Floor Area defined according to some of the following expressions:
- buildable Gross Floor Area assigned by the urban planning for the Street, Street Section, Zone or Place
- average value between all assigned buildable Gross Floor Areas
- most frequent buildable Gross Floor Area assigned to the most representative buildings of the Street, Street Section, Zone or Place.
When there is no Impact Value, Unit Value in Street, Street Section, Zone or Place (VUC) is calculated by application of the Basic Unit Value in Polygon (VUB).
Plot Values
Plot Values are used to obtain the value of the land in particular pieces. We consider two types of Plot Values:
- Impact Value in Plot, or VRP ('Valor de Repercusión en Parcela'), which is obtained from the Impact Value in Street, Street Section, Zone or Place (VRC), by applying all weighting factors that may apply
- Unit Value in Plot, or VUP ('Valor Unitario en Parcela'), obtained from the Impact Value in Plot (VRP), by applying all weighting factors that may apply.
When there is no Impact Value, Unit Value in Plot (VUP) is obtained from the Unit Value in Street, Street Section, Zone or Place, by applying all weighting factors that may apply.
Daniel Trujillano, Architect
Property Valuation Reports in Spain
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