Appraisal of real estate developments
Do you need advice for your projects?
The appraisal of real estate developments is a fundamental process to determine the value of a development project, whether it is in the planning, construction or completion phase. In Tecnitasa Group, we have a wide experience in the valuation of this type of developments, offering approved reports complying with the ECO/805/2003 regulation and valid, therefore, to obtain a mortgage loan.
What is real estate development appraisal?
The appraisal of real estate developments consists of the economic evaluation of the real estate development from the real estate project to the completion of construction, considering its costs and market potential.
During the construction process, intermediate construction appraisals are issued , which update the values according to the progress of the work.
The objective is to provide an objective estimate of the value of the development at each stage of its development, which is essential for developers, investors and financial institutions.
> Factors influencing the appraisal of real estate developments
Several factors affect the valuation of a real estate development. Among the most important are:
Project location
The location, and consequently the type and volume of supply and demand in the area, is usually one of the most determining elements in the real estate value and therefore in the appraisal. Accessibility, quality of infrastructure, proximity to services, orientation and views in some cases, are other aspects linked to the location that have a significant influence.
Project status
The time frame in which completion and commercialization can be foreseen, as well as the degree of progress of the project at any given time, directly impacts the valuation. The approach will be different if construction has not yet started, or if it is at an intermediate stage, or if it is completed. Each stage presents different risks and potentials that are reflected in the valuation.
Typology and characteristics of the units
The general characteristics of the construction, as well as the specifications of the units, such as size, layout, design, quality of materials and energy efficiency, logically affect the total value of the development. Units with superior or innovative features may increase costs, but they may also increase the final value of the project.
Urban planning regulations and permits
Compliance with urban planning regulations and obtaining the necessary permits are essential. The existence of restrictions or difficulties or the lack of the necessary licenses may extend the term and decrease the value of the development or even prevent its development.
> Why is it important to appraise a real estate development?
Performing a professional appraisal offers multiple benefits:
Determination of project value
It provides an accurate estimate of the value of the promotion and of each of its component units, facilitating strategic decision making.
Obtaining financing
Legislation requires an appraisal issued by an appraisal company approved by the Bank of Spain in order for financial institutions to grant mortgage loans. A report issued by these approved companies is essential to access financing on favorable terms.
Transparency in purchase and sale transactions
An objective appraisal guarantees competitive prices based on real data, generating trust between buyers and sellers and speeding up transactions.
Tax optimization and business planning
Knowing the exact value of the project helps in tax planning, allowing to calculate taxes accurately and optimize the profitability of the business.
Economic feasibility assessment
Before investing, it is essential to determine whether the project is financially viable. An official appraisal provides key information for this evaluation.
Benefits of hiring a professional real estate development appraisal service
There are significant advantages to having appraisal experts on hand:
Experience in real estate development projects
At Tecnitasa we issue more than 2,000 appraisals per year of real estate developments at any stage of development. Professionals with experience in the valuation of developments and with a deep knowledge of each local market and its specific characteristics, as is the team that Tecnitasa has, provide knowledge and precision, adapting to the particularities of each project.
Official and accurate technical reports
Appraisal reports must comply with ECO/805/2003 and official standards in order to be recognized by banks, investors and regulatory bodies.
Up-to-date and competitive valuations
An official service provides appraisals based on current market conditions, ensuring that the value reflects economic reality and current trends.
Discover our other appraisal services
In addition to real estate developments, Tecnitasa Group offers appraisals of other real estate assets. Its expert team
applies specific criteria for each type of property, adapting to the particular needs of clients. Explore the available sub-services, each valuation is tailored to the characteristics of the asset.
Latest news on the residential market
Check our blog for up-to-date news and specialized articles on the sector. We offer information on trends, market changes, regulations and advice for owners and investors in this segment.
In Tecnitasa Group, we specialize in the appraisal of real estate developments, offering approved reports that comply with current regulations. Our experience and commitment to quality make us the ideal choice to value your project. Contact us and get a no obligation quote.
Frequently asked questions about real estate development appraisals
How long does it take to carry out the appraisal of a real estate development?
The time required depends on the size and complexity of the project. Our team of professionals tries to adapt to the client’s needs by offering quality, agility and rigor.
Is the appraisal valid for obtaining bank financing?
Yes, as long as it is performed by approved and certified appraisers.
What happens if the project is in the initial phase?
In these cases, the appraisal will be based on the value of the land, according to costs, income and expected project terms.
What is the cost of a professional real estate appraisal?
The cost depends on several factors, such as the size of the project, the number of units included and the complexity of the development. At Tecnitasa Group we offer personalized budgets, adjusted to the specific characteristics of each development.
