Location (property)

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In the real estate industry, location is the exact geographical location of land or land rights , taking into account their use .

General

The location as a determinative compound is the place where a property is geographically located. The location is of decisive importance as a location factor in general in the valuation and especially in the property appraisal. It is the most essential, non-material factor influencing price and value. Location and location are not synonyms. While every location has a location, a location first becomes a location "due to the usage-specific, differently assessed environmental conditions and the market conditions that change over time ...". The requirements for the location are essentially determined by the intended use. In real estate project development, the three factors capital , idea and location are combined with each other for the construction of a property . While the idea and capital can still be described as largely variable and influenceable even after the construction of a property, once a location decision has been made, it can practically no longer be influenced due to the high transaction costs . The location is therefore one of the few factors that cannot be changed in real estate.

species

In terms of location, a distinction is made between macro and micro locations. These terms correspond to the topographical spatial or local position . While the macro location refers to the large-scale environment in which the property is located ( e.g. within the small town , city , region , state or continent of the property location ), micro-location is understood to mean the direct or small-scale environment of the property. The micro-location therefore considers the neighborhood surrounding a property. In the case of an urban plot of land, the city and the district are the focus of the assessment within the framework of the macro location ; in the case of a micro location, the street and its immediate surroundings ( neighborhood ) play a role.

Residential and commercial real estate

Because of the different uses and their impact on the location issue, a distinction is made between residential and commercial properties. For residential and commercial real estate, the common location factors are transport connections , connections to local public transport , house connections or given building permits .

Residential real estate

The location of residential properties is called residential area . Essential criteria are in particular the existing supply infrastructure , the social status of the area (from a social hotspot to a villa colony ), leisure activities , existing local recreation areas , immission situation , quiet situation or usage density .

Commercial real estate

The location of commercial real estate is called business location . The following criteria are particularly important for the success of the trade: population development , population structure , purchasing power potential , existing parking spaces , pedestrian frequency (in retail ), road connections , train station , port or airport ( industry ).

Classification

The summary of all location criteria can be condensed into four main groups, each of which is graded:

In the case of residential areas, a distinction is made between pure residential areas ( Section 3 BauNVO ), general residential areas ( Section 4 BauNVO), special residential areas ( Section 4a BauNVO), village areas ( Section 5 BauNVO), mixed areas ( Section 6 BauNVO) and urban areas ( Section 6a BauNVO). Commercial real estate is already partially permitted in mixed areas, urban areas and also core areas ( § 7 BauNVO). There is only commercial use in commercial areas ( § 8 BauNVO) and industrial areas ( § 9 BauNVO).

Commercial properties in A-locations have a pedestrian frequency of 10,000 to 15,500 pedestrians / hour ( pedestrian zones ), B-locations reach 40–75% of this frequency. It can be assumed that the street with the highest pedestrian frequency has the highest purchasing power in the city center. From this it can be concluded that this is a prime location. The lower the footfall, the worse the location of a property. In the case of commercial real estate, some authors add a 1C location for the least attractive location, which has a pedestrian frequency of less than 40% of the A location.

Legal issues

The market value ( market value ) of real estate is determined in accordance with § 195 BauGB by “the price which, at the time to which the determination relates, in normal business transactions according to the legal conditions and actual properties, the other quality and location of the property or of the other object of the valuation could be achieved regardless of unusual or personal circumstances ”. The location of the property is therefore an integral part of the legal definition of the market value. On the basis of the collection of purchase prices provided for in Section 195 of the BauGB, average location values ​​for the soil are to be determined across the board in building law in accordance with Section 196 of the BauGB, taking into account the different development status (standard land values ). Pursuant to Section 4 (2) ImmoWertV , the condition of a property is determined by the totality of the legal conditions influencing market value and actual properties, the other properties and the location of the property. Pursuant to Section 6 (4) ImmoWertV, the characteristics of the location of properties are, in particular, traffic connections, the neighborhood, the residential and business location and environmental influences.

meaning

The higher the classification level, the higher the market value of an otherwise comparable property. The market value of a property therefore stands and falls with its location. The classification thus affects the property purchase price and the amount of the rent ; in the case of property financing , the classification of the location is included in the property rating . While the cash flow of the property to be loaned and the location are each weighted by 30% in the rating of commercial properties, the property market and property each contribute 20%.

literature

  • Egon Murfeld (Ed.): Special Business Administration of the Real Estate Industry (5th edition). Hammonia Verlag Hamburg, ISBN 978-3-87292-220-5
  • Hanspeter Gondring: Real Estate Management: Handbook for Study and Practice (2nd edition). Vahlen Verlag, ISBN 978-3800634187
  • Erwin Sailer / Henning J. Grabener: Real estate expertise from A to Z: The lexicon with comprehensive answers to questions from the real estate industry (8th edition). Grabener Verlag ISBN 978-3925573262
  • Lidwina Kühne-Büning / Volker Nordalm / Lieselotte Steveling: Basics of the housing and real estate industry (4th edition). Knapp Verlag Frankfurt, ISBN 978-3831407064

See also

Individual evidence

  1. ↑ Monika Walther / Günter Muncke / Maike Schwarte, location and market analyzes , 2001, p. 5
  2. ↑ Jürgen Platz, Real Estate Management: Test Criteria for Location, Substance, Yield , 1993, p. 49
  3. ↑ Michael Mütze (ed.), Immobilieninvestitions , 2009, p. 1 f.
  4. ↑ Wolfgang Kleiber , Market value determination according to the Valuation Ordinance , 2007, p. 1351 f.
  5. ↑ Christoph Hares, On property from the perspective of accounting and valuation theory , 2011, p. 158
  6. ↑ Michael Brückner, Practical Guide to Real Estate Acquisition , 2016, p. 147
  7. ↑ Christina Arndt, standard land values ​​in areas with low purchase prices , 2014, p. 65
  8. ↑ TEGoVA, European property and market rating: A guide for experts , October 2003, VAP 10-12, p. 11 ff.