Proposal for a new approach to the specific valuation of buildings on foreign land with a concrete example

The right to build on someone else's land is a novelty in the real estate market. If the land is encumbered with a building right, the owner of the land must, according to the Civil Code, tolerate construction on or even below its surface. Such types of land are rarely traded on the market. The commonly used valuation method (direct comparison method) cannot be applied here. This paper therefore proposes a combination of commonly used methods in the field of real estate valuation, the application of which leads to the valuation of real estate with different ownership. The combination of methods includes the direct comparison method, the Naegeli method and the cost method of building valuation. In these cases, the Naegeli method can be used for valuation, which is used to calculate the price of building land according to location class. The method tracks the dependence of the price of land on the value of the building standing on it. It also takes into account the efficiency of land use and the surrounding environment. The aim of this article is to describe the use of a combination of methods for the specific valuation of a building on foreign land, which is located on foreign land with an example.