Land is the underground and above-ground piece of earth that has affixed boundaries, area (surface, code), location, legal status with legal restrictions, registered in the State Unified Cadaster of Real Estate.
Land is unique with that it does not lose its consumer attributes over time (has an infinite useful life). Unlike buildings, the value of which gradually decreases over time depending on their depreciation, land retains its value.
Estimation of land market price is necessary to carry out the following functions:
- investment of land in a legal person’s charter capital,
- land acquisition,
- land insurance (insurance contract value depends on land value),
- accounting of organizations (although no depreciation is calculated for land, because it is considered to have an infinite useful life, market changes affect the market value of land, so the need arises for land revaluation),
- transfer of land to trust management,
- land collateral (banks and credit institutions provide loans secured by land based on the report of an independent appraiser), and in other cases.
In land valuation, a number of factors affect its value, including:
- rights in rem and restrictions,
- intended and operational purpose,
- construction standards,
- size of the land plot,
- position, location, slope,
- availability of transport nodes,
and other factors affecting the value.
Our experts estimate the market value of land in several stages, using accepted valuation methods and ways based on the legislation of the Republic of Armenia, the Law on Real Estate Valuation of the Republic of Armenia, the Real Estate Valuation Standard of the Republic of Armenia, the provisions of the International Valuation Standards (IVS).