Value of Immovable Property

The value of immovable property does not usually include plant or animal life.

In common law systems such as the United States or United Kingdom, you often see the term real estate. In civil law systems, the phrase immovable property is more frequently used. Value of immovable property is thus established similarly to real estate.

Identification

Immovable property is one definition of real estate. Like real estate, immovable property includes all the land or acreage that the buildings sit upon as well as the structures or buildings themselves. In this sense, immovable property is also considered "real property" as opposed to personal property. Value is therefore determined by a number of factors.

Calculations

In calculating the value of immovable property, you need therefore consider not only the value of the building and its amenities, but also the worth of the land itself. This typically does not apply to flora or fauna. There is also the issue of whether or not any value is fixed to "rights to that land" -- in other words, whether it contains some historical value or other quality which would accentuate or negate its marketability.

Other Forms of Value

While market forces usually determine the going price of a piece of property, there are other considerations. This is especially the case if an immovable property can provide for renting or leasing of units. Also, there is the possibility that open land associated with a property offers an investment or development opportunity. All these contingencies could augment the potential value.

References

• Immovable Property
• Accommodation Times: Valuation of Immovable Property