LAND VALUATION TECHNIQUE BY GIS
BY:
Suroj Dahal (suroj.rocks@gmail.com)
Durga Prasad Ojha(sumandp123@gmail.com)
Suman Bikram Panta(sumanpanta999@gmail.com)
(This project is done for partial fullfillment of third year Engineering project)
1
Presentation Outlines
 Introduction
 Objectives
 Land Valuation Methods
 Methodology
 Result
 Project Limitations
 Conclusion and recommendations
 References
2
Introduction
• Land is a basic resource for wealth creation.
• Efficient information on land is a good
foundation for wealth generation and national
development.
• Land valuation is the process of estimating the
value of property at a given time.
3
Contd…
• Value and potential of property are
fundamentally determined by its location.
• Thus, GIS is very important in land valuation.
• To determine the value of a land, some land
valuation influencing factors are selected and
spatially analyzed by using GIS.
4
Objectives
Main objective:
 To prepare a land valuation map.
Sub-Objective:
 To analyze and visualize land data to produce land
value information using ArcGIS .
 To determine the weights of different land value
factors.
5
Land Valuation Methods
 Comparative Method
 Cost Method
 Income Method
 Nominal Asset Land Valuation Method
6
Methodology
7
Define Study Area
Define Problem
Collect Data
Formulate Objective
Pre Pre-processing data
Weight Calculation
Factor Determination
Analyze the influence factor on Residential land
values
Literature Review
Validate the model
Conclusion
Factors Considered
 Road Facility
 Water Facility
 Electricity Facility
 Location of Land parcel
 Transportation
 Communication
 Sewerage
 Temporal residence type
(Reference: “Survey Office Working Procedure-2060”)
8
9
Business and Residential Area Existing Revised
S.N. Factors Weight % Weight %
1 Road Facility 10 0.20 18 0.36
2 Location of Land parcel 10 0.20 10 0.20
3 Water Facility 8 0.16 8 0.12
4 Electricity Facility 8 0.16 6 0.16
5 Transportation 5 0.10 3 0.06
6 Communication 4 0.08 2 0.04
7 Sewerage 3 0.06 2 0.04
8 Temporal residence type 2 0.04 1 0.02
Total 50 1 50 1
10
1. Road Facility Existing Revised
S.N. Road Type Weight % Weight %
1 Highway 10 1.00 18 1.00
2 District 8 0.80 12 0.66
3 Inner-blacktopped 6 0.60 10 0.55
4 Inner-ortho 4 0.40 6 0.33
5 Goreto /Galli 2 0.20 4 0.20
6 Kulo 1 0.10 2 0.10
7 Not access 0 0.00 0 0.00
2.Communication
Facilities Existing Revised
S.N. Type Weight % Weight %
1 Telephone 4 1.00 2 1.00
2 no service 0 0.00 0 0.00
11
4. Location of Land Existing Revised
S.N.
Location of Land
parcel Weight % Weight %
1 Health-all 4 8 1.00 10 1.00
2 Education-only 3 6 0.75 6 0.60
3 Business Centre-only 2 4 0.50 4 0.40
4
Administration centre-
1 2 0.25 2 0.20
5 No Service 0 0.00 1 0.10
5.Transportation
Facilities Existing Revised
S.N. Type Weight % Weight %
1
Public
(Highway/District) 5 1.00 3 1.00
2 Partial(Inner) 2 0.40 2 0.67
3 (Galli /Goreto Access) 0.00 1 0.33
4 No Service 0 0.00 0 0.00
12
6. Sewerage Facility Existing Revised
S.N. Type Weight % Weight %
1 Public Sewerage 3 1.00 2 1.00
2 no service 0 0.00 0 0.00
7.TemporalResidence Existing Revised
S.N. Type Weight % Weight %
1 Permanent 2 1.00 1.0 1.00
2 Temporal 1 0.50 0.5 0.50
Table: Land Classification ( Source: Survey Department)
Class 2Ka 41-50
Class 2Kha 31-40
Class 2Ga 21-30
Class 2Gha 11-20
Class 2Nga 1-10
13
Fig: Restriction model
14
Fig: Suitability model
15
Result
 A land valuation map showing the grade range of
parcels.
 Weightage of individual factors affecting land
valuation.
16
Fig: Land valuation map 17
Project Limitations
 The number of land valuation factors is
uncertain.
 Legal factors and personal sentiments are not
considered in this valuation process.
 The final map is a 2D map.
18
Conclusion and recommendations
 Economic changes are seriously affecting real
estate marketing and land values are fluctuated.
 A land valuation method which has spatial
abilities must be developed to prevent this
fluctuation.
 To increase the effectiveness of land valuation
process, a nominal asset value-based technique
can work using GIS.
 Different land valuation factors are formulated
and spatially examined to produce a land
valuation map.
19
• Multiple Regression Analysis (MRA) identifies the
degree of importance of each variables and show
how well the model itself perform an
estimating device.
• Developing a regression model helps to determine
the land values in a mathematical way.
20
References
 a) French N.S., The Valuation Specialized Property: A review of Valuation Methods.
 b) Yomralioglu T., Nisanci R., (2004), Nominal Asset Land Valuation Technique by GIS. FIG
Working Week 2004 Athens, Greece, May 22- 27
 c) Yomralioglu T., Nisanci R., Yildirim V., (2007), An Implementation of Nominal Asset Based
Land Readjustment, Turkey
 d) Muresan I.M, Haidu I., Imbroane A., Conceptual GIS model in determining market value for
properties
 e) Mathias L., Jaan K., (2000), INTEGRATING GIS WITH A LAND VALUATION INFORMATION SYSTEM:
SOME NON-TECHNICAL CONSIDERATIONS FOR THE ESTONIAN CASE, Delft University of Technology,
Department of Geodesy, The Netherlands, Estonian National Land Board, Estonia
 f) Nisanci R., B Uzun B., Colak H. E., (2006), Optimization of Land Valuation Factors by GIS &
SPSS, Turkey
 g) http://1ropani.com/ (access date 8th april,2014)
 h) http://resources.arcgis.com/en/help/ (access date 5th july, 2014)
21
22

Land valuation

  • 1.
    LAND VALUATION TECHNIQUEBY GIS BY: Suroj Dahal (suroj.rocks@gmail.com) Durga Prasad Ojha(sumandp123@gmail.com) Suman Bikram Panta(sumanpanta999@gmail.com) (This project is done for partial fullfillment of third year Engineering project) 1
  • 2.
    Presentation Outlines  Introduction Objectives  Land Valuation Methods  Methodology  Result  Project Limitations  Conclusion and recommendations  References 2
  • 3.
    Introduction • Land isa basic resource for wealth creation. • Efficient information on land is a good foundation for wealth generation and national development. • Land valuation is the process of estimating the value of property at a given time. 3
  • 4.
    Contd… • Value andpotential of property are fundamentally determined by its location. • Thus, GIS is very important in land valuation. • To determine the value of a land, some land valuation influencing factors are selected and spatially analyzed by using GIS. 4
  • 5.
    Objectives Main objective:  Toprepare a land valuation map. Sub-Objective:  To analyze and visualize land data to produce land value information using ArcGIS .  To determine the weights of different land value factors. 5
  • 6.
    Land Valuation Methods Comparative Method  Cost Method  Income Method  Nominal Asset Land Valuation Method 6
  • 7.
    Methodology 7 Define Study Area DefineProblem Collect Data Formulate Objective Pre Pre-processing data Weight Calculation Factor Determination Analyze the influence factor on Residential land values Literature Review Validate the model Conclusion
  • 8.
    Factors Considered  RoadFacility  Water Facility  Electricity Facility  Location of Land parcel  Transportation  Communication  Sewerage  Temporal residence type (Reference: “Survey Office Working Procedure-2060”) 8
  • 9.
    9 Business and ResidentialArea Existing Revised S.N. Factors Weight % Weight % 1 Road Facility 10 0.20 18 0.36 2 Location of Land parcel 10 0.20 10 0.20 3 Water Facility 8 0.16 8 0.12 4 Electricity Facility 8 0.16 6 0.16 5 Transportation 5 0.10 3 0.06 6 Communication 4 0.08 2 0.04 7 Sewerage 3 0.06 2 0.04 8 Temporal residence type 2 0.04 1 0.02 Total 50 1 50 1
  • 10.
    10 1. Road FacilityExisting Revised S.N. Road Type Weight % Weight % 1 Highway 10 1.00 18 1.00 2 District 8 0.80 12 0.66 3 Inner-blacktopped 6 0.60 10 0.55 4 Inner-ortho 4 0.40 6 0.33 5 Goreto /Galli 2 0.20 4 0.20 6 Kulo 1 0.10 2 0.10 7 Not access 0 0.00 0 0.00 2.Communication Facilities Existing Revised S.N. Type Weight % Weight % 1 Telephone 4 1.00 2 1.00 2 no service 0 0.00 0 0.00
  • 11.
    11 4. Location ofLand Existing Revised S.N. Location of Land parcel Weight % Weight % 1 Health-all 4 8 1.00 10 1.00 2 Education-only 3 6 0.75 6 0.60 3 Business Centre-only 2 4 0.50 4 0.40 4 Administration centre- 1 2 0.25 2 0.20 5 No Service 0 0.00 1 0.10 5.Transportation Facilities Existing Revised S.N. Type Weight % Weight % 1 Public (Highway/District) 5 1.00 3 1.00 2 Partial(Inner) 2 0.40 2 0.67 3 (Galli /Goreto Access) 0.00 1 0.33 4 No Service 0 0.00 0 0.00
  • 12.
    12 6. Sewerage FacilityExisting Revised S.N. Type Weight % Weight % 1 Public Sewerage 3 1.00 2 1.00 2 no service 0 0.00 0 0.00 7.TemporalResidence Existing Revised S.N. Type Weight % Weight % 1 Permanent 2 1.00 1.0 1.00 2 Temporal 1 0.50 0.5 0.50
  • 13.
    Table: Land Classification( Source: Survey Department) Class 2Ka 41-50 Class 2Kha 31-40 Class 2Ga 21-30 Class 2Gha 11-20 Class 2Nga 1-10 13
  • 14.
  • 15.
  • 16.
    Result  A landvaluation map showing the grade range of parcels.  Weightage of individual factors affecting land valuation. 16
  • 17.
  • 18.
    Project Limitations  Thenumber of land valuation factors is uncertain.  Legal factors and personal sentiments are not considered in this valuation process.  The final map is a 2D map. 18
  • 19.
    Conclusion and recommendations Economic changes are seriously affecting real estate marketing and land values are fluctuated.  A land valuation method which has spatial abilities must be developed to prevent this fluctuation.  To increase the effectiveness of land valuation process, a nominal asset value-based technique can work using GIS.  Different land valuation factors are formulated and spatially examined to produce a land valuation map. 19
  • 20.
    • Multiple RegressionAnalysis (MRA) identifies the degree of importance of each variables and show how well the model itself perform an estimating device. • Developing a regression model helps to determine the land values in a mathematical way. 20
  • 21.
    References  a) FrenchN.S., The Valuation Specialized Property: A review of Valuation Methods.  b) Yomralioglu T., Nisanci R., (2004), Nominal Asset Land Valuation Technique by GIS. FIG Working Week 2004 Athens, Greece, May 22- 27  c) Yomralioglu T., Nisanci R., Yildirim V., (2007), An Implementation of Nominal Asset Based Land Readjustment, Turkey  d) Muresan I.M, Haidu I., Imbroane A., Conceptual GIS model in determining market value for properties  e) Mathias L., Jaan K., (2000), INTEGRATING GIS WITH A LAND VALUATION INFORMATION SYSTEM: SOME NON-TECHNICAL CONSIDERATIONS FOR THE ESTONIAN CASE, Delft University of Technology, Department of Geodesy, The Netherlands, Estonian National Land Board, Estonia  f) Nisanci R., B Uzun B., Colak H. E., (2006), Optimization of Land Valuation Factors by GIS & SPSS, Turkey  g) http://1ropani.com/ (access date 8th april,2014)  h) http://resources.arcgis.com/en/help/ (access date 5th july, 2014) 21
  • 22.