DEMINISHED MARKET VALUE OF REAL ESTATE DUE TO THE ESTABLISHMENT OF RIGHT OF WAY

Tibor Bodolo ,
Tibor Bodolo
Vojin Bigović ,
Vojin Bigović
Aleksandar Adam
Aleksandar Adam

Published: 07.07.2021.

Volume 24, Issue 1 (2021)

pp. 10-19;

https://doi.org/10.62683/NiP24.10-19

Abstract

In  the  last  10–15  years,  we  have  witnessed  significant  infrastructural  investments  in  Serbia, including  the  construction  of  energy  corridors.  Unlike  complete  expropriation  (construction  of  roads, surface   mines,   etc.),   incomplete   expropriation   is   applied   to   energy   corridors,   which   implies   the establishment of right of way on real estate without a change of ownership. As the legal solution provides for  the  possibility  of  determining  the  fee  for  reducing  the  market  value  of  real  estate  due  to  the establishment of servitude, the proper calculation of this type of fee has become important, primarily due to  the  costs  of  proceedings  for  determining  fees  and  court  burdens  (dissatisfied  owners  and  business lawyers).  The  need  to  establish  socially  acceptable  criteriaand  rules  of  the  profession  in  these proceedings.  The  paper  presents  the  legal  framework,  definitions  and  restrictions  imposed  by  energy corridors on real estate, technical regulations and possible ways of calculating deminiton in market value. Market, cost and yield approach are applicable in this topic as well. The results of the research of market prices  of  traded  agricultural  land  on  the  routes  of  energy  corridors,  which  was  carried  out  in  order  to empirically find the degree of reduction of market values, are also presented. The aim of this paper is to systematize  regulations,  theoretical  and  experiential  knowledge  in  this  field  as  a  contribution  to  the profession  or  experts,  assessors  and  lawyers  who  act  in  these  cases.  Impairment  of  the  market  value of real estate is very little dealt with in the literature and is mainly based on "experiential data" of experts or appraisers. The results of the research (reduction) of market prices of traded agricultural land indicate that empirical  data  will  not  be  easy  to  obtain  for  some  time  and  that  alternative  methods  of  estimating  the reduction must be developed.

Keywords

Citation

Copyright

Article metrics

Google scholar: See link

The statements, opinions and data contained in the journal are solely those of the individual authors and contributors and not of the publisher and the editor(s). We stay neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Most read articles