How to Calculate the Share of a Land Plot in the Value of Office and Retail Real Estate: Regression Analysis to Increase the Cadastral Valuation Reliability

Vladislav Sutyagin, Yana Radyukova, Irina Zinovieva, Svetlana Zenchenko, Valentina Smagina, Nikolay Pakhomov
International Journal of Economics and Business Administration, Volume VIII, Issue 4, 667-681, 2020
DOI: 10.35808/ijeba/617


Purpose: In 2014 the Tax Code was updated. Currently, it also deals with the cadastral valuation of capital construction projects. However, there are problems associated with the cadastral valuation reliability. One of the key problems is how to evaluate a capital construction object and exclude the cost of the land plot. Design / Methodology / Approach: This study proposes an alternative approach to calculating the value of a land plot by analyzing the share of a land plot in the value of a single property. In the article, the authors consider that a land plot is included in the value of a single property due to a number of various pricing factors. The method of regression analysis was used as a methodological basis. Findings: Based on the results of the regression analysis, the authors gave recommendations on how to use the proposed factor models and made certain conclusions. Practical Implications: The results of this study can be used in cadastral valuation and in the process of challenging the cadastral value. Originality / Value: The presented study is an alternative way of calculating the value of land in a single property. It is useful since there is little information on how to apply the traditional methods of comparative sales.

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