The long-term goal of the Department is to develop and implement an optimal system of property mass valuation that is in accordance with international standards and practice, which makes the real estate market transparent, and ensures the market value of the property of all property rights holders for different purposes of state administration and other needs. Above all, the purpose of the mass valuation system is to determine the tax base for real estate taxation on real market grounds and in accordance with the constitutional rights of citizens.
The Republic Geodetic Authority is developing IT system, organization, competencies and services related to the property mass valuation.
The Department carries out the implementation of Component A "Valuation and Property Taxation " of the Real Estate Management Project in Serbia, which is financed, according to the Government's decision, from the World Bank loan and has a period of realization until the end of 2020. Component A includes:
The planned mass valuation system consists of subsystems for:
1. Collecting the necessary data
Data collection is divided into:
2. Data processing from the real estate market
Data processing from the real estate market includes the improvement of the quality of the collected data and the analysis of the real estate market. Improving the quality of the data includes quality control, verification of the properties sold and verification of the agreed price. After improving the quality of data, their sorting by sub-markets (apartments, houses, business premises, construction land, etc.) is done. An analysis is carried out in the sub-markets for the purpose of determining the basic parameters of the real estate market: price levels, price changes and trends, level of market activity, as well as determining the need for possible allocation of different market zones into sub-markets within the Republic of Serbia.
In line with price trends, real-estate price indices for time-adjustment of data from different epochs are calculated and applied in order to form a larger and more reliable data sample that will be used for the definition of a property valuation model.
3. Defining the model for property valuation
Valuation models are formed for each individual sub-market from the Registry of Property Prices that has passed the processing. The basis of each model is a characteristic property for which the range of values, value levels and value zones that correspond to each of the value levels are obtained and calculated as a result of spatial analysis. Properties that differ from the characteristic are sorted according to the parameters for valuation in the analytical units on the basis of which relational tables are formed. Relational tables determine the difference in value for groups of properties relative to the characteristic property.
Mathematical formulas are relations that describe the combination of the level values and the coefficients of the relational tables depending on the location (belonging to the zone) and the characteristics of the property.
The planned property model is simple, with some of the parameters of greatest impact. The advantage of the model is the ability to group market data for locations with the same value levels, which makes it easier to determine values for areas with reduced sales and market data.
Models are obtained in an iterative process by controlling the accuracy of the model for every iteration. Adopted models should meet internationally established accuracy criteria.
4. Calculation and registration of property value
Calculation and registration of property values are related to the property bulk and the application of defined models. The prerequisite with this process is the collection of the necessary data on properties (known property characteristics necessary for the valuation). All existing properties must be classified into property markets, followed by assigning value zone and value level. The affiliation to the market determines the type of model that will be applied to calculate the value of a property. After the calculation, data on the value of the property are recorded and kept in the real estate cadastre database along with the date of value.
In order to ensure the transparency of the procedure, data and procedures for property mass valuation will be published on the website of the Republic Geodetic Authority