URAD ZA MNOŽIČNO VREDNOTENJE NEPREMIČNIN

GEODETSKA UPRAVA REPUBLIKE SLOVENIJEMINISTRSTVO ZA INFRASTRUKTURO IN PROSTORREPUBLIKA SLOVENIJA

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Andrej GlavicaMass Real Estate Valuation Office

Surveying and Mapping Authority of the Republic of Slovenia

USE OF REAL ESTATE DATABASES FOR MASS

VALUATION IN SLOVENIA

UNECE WPLA Workshop Vienna 2014

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Introduction

Development of mass real estate valuation system as an response to the “very poor” existing property taxation system.

For good mass appraisal system based on market values are essential:

• Transparent real estate market

• Real estate data and information

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mass Valuation System Development

2000 2001 2002

Real Estate Registration Modernization Project (WB)

Real Property Mass Appraisal Act

Real Estate Recording Act

MV Office Establishment

Sales Register Establishment

Valuation Models Development

Test Valuation

MV System Enforcement

System Development

PPurpose:urpose:

Social affairs, banks, individual appraisals, court, taxation

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Databases development process

Main existing existing real estate databasesdatabases:

•Land cadastre

•Building cadastre

•Land registry

Purpose:Purpose:

• Protect the property rights

Our goal – Mass Real estate Our goal – Mass Real estate valuation Systemvaluation System:

•Sales price register

•Valuation models register

•Mass valuation calculation algorithm

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Property databases and mass valuation system – “fit for use”

Land Cadastre, Building cadastre and Land registry in 2006:

Problem: Insufficient building data and information for mass valuation system implementation

Solution: Establishment of Real Estate data register

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Real Estate Register

Real Estate Market Register

Value Assessment

(GMV)

Land Register Land

Cadastre

Land Cadastre

REAL ESTATE

REGISTER

Population Register

Slovenian Business Register

MoAF Data (agriculture & forest)

Municipalities Data

Census of

Buildings

QuestionnairesBuildings data and information

capturing project (2007)

Data collection with geodetic

techniques

Later on

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Real Estate Register figures

Enforcement as a public register in 2010. Real estate data, including assessed value,

free of charge available on the internet

Overall:• 6,1 million properties• 1,2 million buildings• 1,8 million parts of buildings• 5,3 million parcels• 1,2 million property owners

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Sales Price Register Based on Mass Appraisal Act (2006)

Established in 2007

No detailed data is available on internet free of charge

Annual reports on real estate market in Slovenia

Contains real estate market data (sale price, property data)

From 2013 contains also rental data

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RER

SPRSales & Rents

Social & Economics Data

RERProperty Data

Real EstateRegister

VALUE INDEXATIONINDEXATIONEvery year

ASSIGNING VALUEGENERAL VALUATIONEvery 4 years

Mass Real Estate Valuation System

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Size

Special

circumstances

Quality

Age

Location

VARIABLES

Sales comparison approach• Valuation model for apartments• Valuation model for family houses• Valuation model for garages• Valuation model for business premises• Valuation model for offices• Valuation model for land for the

construction• Valuation model for built land• Valuation model for agricultural land• Valuation model for forest land

Income approach• Valuation model for power plants• Valuation model for mines• Valuation model for marinas and ports• Valuation model for business premises• Valuation model for gas station

Cost approach• Valuation model for industry• Valuation model for heavy industry• Valuation model for vineyard cottages• Valuation model for farm buildings• Valuation model for public buildings• Valuation model for other buildings

Valuation model for special properties

Valuation modelsValuation models (21)(21)

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Mass Real Estate Valuation ModelsVALUATIONVALUATION MODELS MODELS FREE OF CHARGE AVAILABLE ON THE INTERNET (Valuation Models Register)

value areas, value zones, value tables, value indexes, description of the models,….

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Mass Real Estate Valuation Unit

Property (6,1 million)

Parcel(5,3 million)

Building/Part(1,8 million)

Group of Properties (21)

PROPERTY UNITPROPERTY UNIT

Building/Partof buildingParcel or part

of the parcelVALUE UNIT

VALUATIONVALUATIONMODELMODEL

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Mass Real Estate Valuation Unit definition

=>

1st VALUE UNIT HOUSE + PART OF PARCEL

2nd VALUE UNIT GARAGE

1 PROPERTY:THE SAME OVNER OF HOUSE, GARAGE AND THE FACTORY ON ONE PARCEL

4th VALUE UNIT REST OF THE PARCEL

PROPERTY UNITS:HOUSE,GARAGE,FACTORY ANDPARCEL

3rd VALUE UNIT FACTORY + PART OF PARCEL

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Mass Real Estate value Calculation

M assAppraisal

CalculationSoftw eare

Valuation M odel

Database

Real PropertyDatabase

VALUATION MODELS SPECIFICATIONAND CALIBRATION (21 MODELS)

MASS VALUATION OF ALLPROPETRIES IN THE PROPERTYREGISTER

REAL PROPERTYREGISTER (6,1 M PROPERTIES)

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Conclusion• Property databases “upgraded” to support mass

valuation system– Real Estate Register

• Mass valuation system implemented in 2012

• Mass valuation system in use:

Social “affairs” (subsidies, censuses,..)

Taxes (property transfer tax, land use change)

Banks (mortgage, Basel I, Basel II – EU directives)

Private appraisers, investors

Courts (inheritance, ..)

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Conclusion

Property Tax Law failed on 2014 – Constitutional Court – New Property Tax Law in 2016

Preparing for new cycle of general valuation process – new models, updating the existing models

Preparing changes in registering real estate data:

• Classification of property types

• Optimization of detailed building data

• Quality system control mechanisms

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Thank you!