The German Verkehrswert (market value) of land: Statutory land valuation, spatial planning, and land policy

In Germany, statutory land valuation has developed over the course of almost 60 years into a powerful tool of spatial planning and land policy. The key to statutory land valuation is the concept of Verkehrswert (market value). The Verkehrswert equals the likely selling price of a cadastral parcel of land in the usual course of business at the time of valuation, and considers the legal situation, the actual disposition of the parcel, any other relevant conditions, and the location of the land, but does not take into account unusual or personal circumstances. The article explains the elements of Verkehrswert (market value) which account for the plural values of land such as exchange value, use value, territorial value, and existence value. The German Verkehrswert is not merely an instrument of plan implementation (e.g., land readjustment or compensation for expropriation), but also an analytical tool that helps planners and land policymakers understand when their interventions in land markets are necessary and how they can be helpful.