Market value vs. legal value in land use change in Spain

[EN] The Spanish Land Law of May 28, 2007 gave rise to a radical change in the determination of the legal value of the land for agricultural use under compulsory purchase proceedings linked to the transformation of their use. Under this new law the compulsory purchase value is calculated based on th...

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Autores: Segura García del Río, Baldomero, Vidal, Fernando, Pérez-Salas Sagreras, Jose Luis|||0000-0003-0773-4931, Cervelló Royo, Roberto Elías|||0000-0002-8304-4177
Tipo de recurso: artículo
Fecha de publicación:2010
País:España
Institución:Universitat Politècnica de València (UPV)
Repositorio:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
Idioma:inglés
OAI Identifier:oai:riunet.upv.es:10251/108620
Acceso en línea:https://riunet.upv.es/handle/10251/108620
Access Level:acceso abierto
Palabra clave:Compulsory purchase
Discounted cash flows
Discount/capitalization rate
Market value
Income approach
Interest rate
Profitability
Legal value
ECONOMIA, SOCIOLOGIA Y POLITICA AGRARIA
ECONOMIA FINANCIERA Y CONTABILIDAD
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oai_identifier_str oai:riunet.upv.es:10251/108620
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repository_id_str
spelling Market value vs. legal value in land use change in SpainSegura García del Río, BaldomeroVidal, FernandoPérez-Salas Sagreras, Jose Luis|||0000-0003-0773-4931Cervelló Royo, Roberto Elías|||0000-0002-8304-4177Compulsory purchaseDiscounted cash flowsDiscount/capitalization rateMarket valueIncome approachInterest rateProfitabilityLegal valueECONOMIA, SOCIOLOGIA Y POLITICA AGRARIAECONOMIA FINANCIERA Y CONTABILIDAD[EN] The Spanish Land Law of May 28, 2007 gave rise to a radical change in the determination of the legal value of the land for agricultural use under compulsory purchase proceedings linked to the transformation of their use. Under this new law the compulsory purchase value is calculated based on the real or potential discounted cash flow at a determined rate set in the rule, with the aim of avoiding the negative effects of speculation. The aim of this work was to compare if there are significant differences between the values obtained when applying the methodology provided under the new law and the values presented in the national land prices survey. We have considered whether differences actually exist between the values obtained when applying the methodology provided under the new law and the values presented in the national survey; and the aim of this work is to compare these values. For this purpose the variables relevant for the application of the capitalization method were estimated based on the data published in the Spanish official statistics. Significant differences were found between the legal rate and the one which estimates the market values, with an average value for the studied period of 3.45% and 1.75%, respectively; additionally, different trends were observed. Also the existence of different discount rates for the market value depending on the land use against the unique rate set in the rule has been verified; therefore, the real distortion which a single capitalization rate could give rise to is very significant.Facultad de Administración y Dirección de EmpresasDepartamento de Economía y Ciencias SocialesRepositorio Institucional de la Universitat Politècnica de València Riunet20102010-01-01journal articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttps://riunet.upv.es/handle/10251/108620reponame:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valénciainstname:Universitat Politècnica de València (UPV)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Reserva de todos los derechoshttp://rightsstatements.org/vocab/InC/1.0/info:eu-repo/semantics/openAccessoai:riunet.upv.es:10251/1086202026-06-13T07:49:27Z
dc.title.none.fl_str_mv Market value vs. legal value in land use change in Spain
title Market value vs. legal value in land use change in Spain
spellingShingle Market value vs. legal value in land use change in Spain
Segura García del Río, Baldomero
Compulsory purchase
Discounted cash flows
Discount/capitalization rate
Market value
Income approach
Interest rate
Profitability
Legal value
ECONOMIA, SOCIOLOGIA Y POLITICA AGRARIA
ECONOMIA FINANCIERA Y CONTABILIDAD
title_short Market value vs. legal value in land use change in Spain
title_full Market value vs. legal value in land use change in Spain
title_fullStr Market value vs. legal value in land use change in Spain
title_full_unstemmed Market value vs. legal value in land use change in Spain
title_sort Market value vs. legal value in land use change in Spain
dc.creator.none.fl_str_mv Segura García del Río, Baldomero
Vidal, Fernando
Pérez-Salas Sagreras, Jose Luis|||0000-0003-0773-4931
Cervelló Royo, Roberto Elías|||0000-0002-8304-4177
author Segura García del Río, Baldomero
author_facet Segura García del Río, Baldomero
Vidal, Fernando
Pérez-Salas Sagreras, Jose Luis|||0000-0003-0773-4931
Cervelló Royo, Roberto Elías|||0000-0002-8304-4177
author_role author
author2 Vidal, Fernando
Pérez-Salas Sagreras, Jose Luis|||0000-0003-0773-4931
Cervelló Royo, Roberto Elías|||0000-0002-8304-4177
author2_role author
author
author
dc.contributor.none.fl_str_mv Facultad de Administración y Dirección de Empresas
Departamento de Economía y Ciencias Sociales
Repositorio Institucional de la Universitat Politècnica de València Riunet
dc.subject.none.fl_str_mv Compulsory purchase
Discounted cash flows
Discount/capitalization rate
Market value
Income approach
Interest rate
Profitability
Legal value
ECONOMIA, SOCIOLOGIA Y POLITICA AGRARIA
ECONOMIA FINANCIERA Y CONTABILIDAD
topic Compulsory purchase
Discounted cash flows
Discount/capitalization rate
Market value
Income approach
Interest rate
Profitability
Legal value
ECONOMIA, SOCIOLOGIA Y POLITICA AGRARIA
ECONOMIA FINANCIERA Y CONTABILIDAD
description [EN] The Spanish Land Law of May 28, 2007 gave rise to a radical change in the determination of the legal value of the land for agricultural use under compulsory purchase proceedings linked to the transformation of their use. Under this new law the compulsory purchase value is calculated based on the real or potential discounted cash flow at a determined rate set in the rule, with the aim of avoiding the negative effects of speculation. The aim of this work was to compare if there are significant differences between the values obtained when applying the methodology provided under the new law and the values presented in the national land prices survey. We have considered whether differences actually exist between the values obtained when applying the methodology provided under the new law and the values presented in the national survey; and the aim of this work is to compare these values. For this purpose the variables relevant for the application of the capitalization method were estimated based on the data published in the Spanish official statistics. Significant differences were found between the legal rate and the one which estimates the market values, with an average value for the studied period of 3.45% and 1.75%, respectively; additionally, different trends were observed. Also the existence of different discount rates for the market value depending on the land use against the unique rate set in the rule has been verified; therefore, the real distortion which a single capitalization rate could give rise to is very significant.
publishDate 2010
dc.date.none.fl_str_mv 2010
2010-01-01
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://riunet.upv.es/handle/10251/108620
url https://riunet.upv.es/handle/10251/108620
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Reserva de todos los derechos
http://rightsstatements.org/vocab/InC/1.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Reserva de todos los derechos
http://rightsstatements.org/vocab/InC/1.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
instname:Universitat Politècnica de València (UPV)
instname_str Universitat Politècnica de València (UPV)
reponame_str RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
collection RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15.301629

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