Underrated area data, valuation of commercial properties

Student thesis: Master Thesis and HD Thesis

  • Rasmus Guldager Hansen
  • Jeanette Skovdal Haenschke Larsen
This master’s thesis of the master’s program (Cand.geom) in Surveying, Planning, and Land Management with specialization in Land Management, is written in the period from February first, 2018 to the 8. of June 2018, at Aalborg University Copenhagen. The project is within the frame of development work and proper research, with the main focus on adding to the knowledge obtained in the 1. – 3. semesters of the master’s program in the context of problem-oriented project work. The project is working out to substantiate that the learning goals of the curriculum have been achieved cf. curriculum 2015. In this way, the master’s thesis represents the conclusion of the education. (Aalborg Universitet, 2018)

The problem of this master’s thesis has been raised in the light of the use of area data about the built-up area, both for regulatory and administrative purposes and protection of property rights. However, the identification of errors in the registered area data in the, Bygnings- og Boligregistret (BBR), has made it relevant to investigate the risk of using these possible erroneous area data when valuing commercial real estate, as these estates have been found to contain significant values, both to the society and to the businesses owning the real estates.
Based on a theoretical/empirical framework of understanding supplemented by a survey of the commercial real estate market and property population, it is sought to demonstrate the risk of the occurrence of errors in area data in BBR by examples from practice. In addition, financial and legislative risk using these area data in the valuation is clarified.

Based on these risks, an assessment of the consequences by using erroneous area data relative to the purpose of valuing commercial properties is made, and the incentives to ensure the accuracy of the area data in order to address these consequences are discussed.
The results are considered to contribute to the optimization of the management of property portfolios and also to provide a significant basis for counselling for the surveyor for a large number of his/her core tasks.
Publication date8 Jun 2018
Number of pages71
ID: 280590066