Property value appraisal

The property value is the estimated market value of a property on the reference date selected. It is important to select a date range to put the valuation year in context compared with the valuation of previous years. This valuation is important as it is the datum point from which valuation for three separate Governmental taxes and levies are calculated.

Council tax charge:

Property taxes

Tax Authorities:

• Includes notional rental value for income tax
• Depreciation and adjustments in the corporate and investment tax and dividend disbursement
• Depreciation and deduction limits in income tax in certain circumstances, for example, the valuation of the income tax holiday
• The valuation of a property on death/inheritance/gifting (from 01-01-2010) providing a potential value in proscribed circumstances.

Water provision:

• Water consumption provision and removal charges are taxed on the basis of the property valuation.

Calculation Method of property value

The value is determined by the value that should be accessed on the unencumbered and free ownership of it as could be transferred to the transferee.  This is on the basis of ‘as is’ accounting for the current condition, dilapidations, location and other factors.  There is no consideration of previous valuations but is a free standing current market valuation.

There are various valuation methodologies that are applied;


Current property (e.g., housing):


The comparison method: A building is compared to similar properties that have been sold around the value reference date. Any date variations may be adjusted pro rata.


Obsolete real estate ( cinemas, schools, etc.) :

Depreciated replacement cost (GVW ): The depreciated replacement cost of a property is the amount determined to be paid to build a similar new building which then must be amortized taking into account reinstatement in accordance with the age of the property That depreciation can be split into two types of depreciation : depreciation due to technical obsolescence of the property and a written down value  by functional obsolescence of the property.

Imputed rent capitalization method (HWK): The value is determined by multiplying the capitalization rate of the gross rental value. The capitalization rate is determined on the basis of prevailing factors specific to the building, such as the maintenance state, the vacancy risk, the cost of management charges on such a structure influencing the gross and net returns.

Discounted cash flow method (DCF): A method of calculation of the future cash flow of a building income at a fixed interest rate to ascertain a current value.

IGG can help determining the property value for obsolete real estate and advise the best options available in each case.

Do you need an independent valuation of the property value?  IGG can prepare your submissions.


IGG Bointon de Groot

Adres : Prinses Catharina Amaliastraat 32
2496 XD Den Haag
Post : Postbus 85767
2508 CL Den Haag
Tel : 070 514 54 20
Fax : 070 514 32 31
E-mail :

Our partners

IGG Bointon de Groot is an active partner in the built environment. IGG follows
al trends and developments. Some of our important partners: