The Valuation Subsystem is responsible for all issues on valuation handled by the Department of Lands and Surveys. Through the Valuation Sub-system, all processes of the Valuation Branch are expedited and partially automated, using various calculations and time frames by applying modern technology.  

Real estate appraisal aims to determine the value of real estate, current or not, for a specific purpose and at the same time to impose taxes and royalties. The amount of taxes and fees paid by the citizens as well as the compensation for the expropriations made by the State and Semi-governmental organizations depend on the value of the property. Through the Valuation Subsystem, all the processes of the Valuation Division are accelerated and partially automated, using various calculations and time frames with the application of modern technology.

Special Valuation

On a daily basis, most of the weight in the valuation branch is carried by the Special Valuation Section. When a property is sold, its value must be determined through a special valuation. The special valuation may be carried out with or without a Local Enquiry. Various town planning projects, such as compulsory acquisitions, always require special valuations. The aim is to conduct valuations on both the acquired part and the remaining part. These valuations typically form the basis for the calculation of the compensation.

General Valuation

The main objective of a general valuation is to indicate the market value of a property in a particular year. Two parameters are taken into account in the valuation: the Value of Land and the Value of Property (i.e. land and buildings). The Valuation Sub-subsystem has developed automated valuation models running in parallel with the current and existing procedures used by the Valuation Branch for the determination of market value and its later recording in the LIS.

Automated Valuation Models

All the valuation models designed can be used both for mass valuations, particularly for General Valuation purposes, as well as for specific valuations including compulsory acquisitions and requisitions.

Four valuation methods have been applied for general and specific automated valuation purposes.

A statistical analysis of the characteristics and sales of properties is needed before any of the methods can be used to value a property. The SAS (Statistical Analysis System) is used for the statistical analysis of the data. The user can export analyses and insert them back into the valuation parameters or the valuation.

Information Required

There are two general categories of information that are to be used for the valuation:

• The Legal and Valuation characteristics of the properties to be valued; and
• The parameters estimated after analysis of sales, rents and construction costs; and stored in system tables appropriately configured for this purpose.

Model Classification (General Information)

The models are classified into four main categories:

Α) The Base Models use the base unit value of each sub-property and add or subtract to that base value to reflect the advantages or disadvantages of the underlying sub-property over the typical sub-property. The Base Models developed are:

Land Models

• Residential/Commercial Land Model
• Industrial Land Model
• Undeveloped Rural Fields Model
• Agricultural/Livestock Farms Model

Unit Models

• Residential/Apartment Model
• Hotel (Tourist Accommodation) Model
• School/Hospital/Clinic Model
• Livestock Building Model

Other Sub-properties Model

• Plantations/Trees Model
• Wells/Pits Model

Β) The Cost Models use the base unit cost of each sub-property built with typical construction materials and add or subtract to that base cost to account for the more expensive or cheaper materials of the underlying sub-property as opposed to the typical sub-property. These models also subtract due to functional, economic or natural ageing.

The Cost Models developed are:

• Commercial / Industrial Units Cost Model
• Retail Cost Model
• Offices Cost Model
• Industrial Units Cost Model

C) Comparative Method Models. This method uses preset models (set-ups), developed by an expert user, in order to compare directly the characteristics of the subject property with the characteristics of sold properties and, after several adjustments, to calculate the value of the subject property. These Models can be classified into two general categories:

Comparative Method Models:

• Direct Sales Comparison Model
• Direct Rents Comparison Model

D) The Income (Rent) Capitalisation Model. The basis of this model is the Comparative Method (described above) in combination with the percentage used for capitalisation, which is again derived following an automatic analysis and comparison of sales and rents for the same or similar properties. The model is the same for all properties because there are no specific rules for each type of property, nor was there a need for such rules.

• Income Capitalisation Model