DBPapers
DOI: 10.5593/sgem2017/53/S21.024

DETERMINATION OF THE INFLUENCE OF CONDITIONS FOR THE BUILDINGS PLACEMENT ON THE VALUE OF THE LAND USING HABU METHOD

A. Bradac, M. Matous, P. Klika, A. Klikova
Wednesday 13 September 2017 by Libadmin2017

References: 17th International Multidisciplinary Scientific GeoConference SGEM 2017, www.sgem.org, SGEM2017 Conference Proceedings, ISBN 978-619-7408-10-2 / ISSN 1314-2704, 29 June - 5 July, 2017, Vol. 17, Issue 53, 189-198 pp, DOI: 10.5593/sgem2017/53/S21.024

ABSTRACT

Contribution follows the issues included in the contribution “Influence of a possibility to emplace a building and a type of a building being placed on the value of the land” published in the conference proceedings SGEM 2016. The authors of the contribution focused on issues related to the conditions for the building placement on the land. They will examine what conditions must be met to place a building, in response to various forms of placement permits. The conditions of the building placement determine the type of a building being placed and the way of its future use. In general the conditions have a crucial impact on the value of the land. For this reason, the authors focused not only on the issues from the perspective of the valuation, but also in terms of potential emplacement of certain types of buildings on specific lands. In the first part of the paper, authors dealt with the issue of the buildings placement conditions from the perspective of specific requirements for the protection of public interests, eg. in terms of environmental protection, EIA, etc. These issues were examined not only under the legislation of the Czech Republic but also under legislations of other selected European Union countries. The conditions for the building placement determine the particular type of a building that is allowed to be placed. In the contribution published in 2016, there were stated that mentioned conditions have an impact on the value of the land. In the current paper the authors focused on the valuation of these impacts (conditions) using method “High and best use“(hereinafter “HABU”), because the basic principle of this method is to evaluate the future use of the land and thus determine profitability of land as a future investment. The HABU method evaluates in total four criteria, namely whether the proposed future land use is legally permissible, physically possible, financially reasonable and most productive. Conditions which determine the possible type of a construction are essential for solving the first criterion "legally permissible". The paper lists the basic procedures and formulas of the HABU method so that it is possible to determine the value of the land and evaluate the impact of the type of buildings on the land price with reasoning. At the end the method is applied to a particular example.

Keywords: building placement, building law, highest and best use method, value of land