Land Plot Valuation

Land plot valuation is not as simple as it may seem at first glance. Its value depends on numerous factors — zoning, location, improvements, market activity, and more. Properly conducted real estate valuation ensures that the property’s value is accurate and aligned with market conditions.

What Methods Are Used to Value Land Plots?

There are several approaches used in land valuation. These include:

• Sales Comparison Approach - Used by comparing the subject land with similar market sales — either currently offered plots or completed transactions.

• Subdivision Development Method - Applied when large land parcels are best utilized by subdivision and development planning.

• Allocation Method - A proportional allocation of value between land and improvements when direct land comparables are limited.

• Extraction Method - Based on the principle of residual value — land value is extracted from the total improved property value.

• Residual Method - Commonly used for commercial land valuation through an income-based model.

• Land Rent Capitalization Method - Used when land is vacant — valuation is based on capitalizing its market rental rate.

When Is Land Valuation Needed?

• When making financial decisions

• When planning development projects

• During legal disputes

• For taxation purposes

• For residency applications or simple purchase/sale decisions

What Does a Detailed Land Valuation Include?

A detailed land valuation includes:

• Determining the highest and best use;

• Selecting the correct methodology;

• Analyzing the physical and legal characteristics of the plot;

• Market research of the land plot;

• Compliance with international valuation standards;

How Does the Valuation Process Work?

• Order confirmation — preparation of invoice and engagement letter

• Inspection — property site visit by a certified valuer

• Report preparation and delivery — electronically or in printed form

Why Do Clients Trust Us?

• 15+ years of experience

• Working under international IVS standards

• High credibility in the legal and financial sectors

• Detailed and transparent valuation reports

• Fast and accurate service

• Individual approach to each client

For additional information, please contact us — our certified valuers will provide complete answers to all your questions.

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