Capitalization rate multidimensional evaluation for urban real estate cadastre revision

The new revision of the land register is intended to give each real estate unit an assessed value which approximates the market value. The provided approach has statistical nature. However, in the absence of a well-established market, the coming reform requires the use of the indirect estimation procedure. This paper proposes a method for estimating the capitalization rate that could usefully be applied in mass appraisal. The proposed model for the evaluation of the capitalization rate is intended as an alternative to traditional inferential processes that apply in real estate market. It can be used even in market segments that are not enough active and does not require the use of technical adjustments assigned from estimators. The procedure is based on a speculative-financial real estate market model. According to this model real factors and monetary factors affect the rate of capitalization. In addition, it assumes that market prices are formed by a process of synthesis of economic-social and personal services. For cadastral purposes it is necessary to purify the market values experienced by these individual influences in order to estimate the average market value. In this paper, the application of a specific multi-criteria approach for estimating capitalization rate is tested. The method is based on the consideration of the mutual influences of the factors that determine capitalization rates. It aims to objectify property values which, by their own nature, are partly subjective. The procedure is applicable to urban and extra-urban micro and macro-estimation and it is based on the UTA approach and on the fuzzy measures theory.