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What is meant by the standard land value?

Last updated: 8. June 2020 | Reading time: 1 minute

The relevant valuation committee assesses all property sales and uses this data to determine location-specific ‘standard land values’, which are generally published every two years.

The standard land value is determined for the most homogeneous area possible within a local authority and may vary considerably even within a single local authority. If the plot has exceptional features (e.g. an above-average view, an unusual layout, is larger than average, is on a slope, etc.), this must be taken into account by applying a premium or a discount. If the extent of potential building development deviates from the specifications of the standard land value, this must also be taken into account separately.

In residential construction, the extent of building use is usually defined by the floor area ratio (FAR). The FAR is calculated by dividing the floor area by the plot size.

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