Land valuation in case of easement: the case study in Slovenia

Abstract

The purpose of the research was to analyse the impact of easement on land value. To this end, relevant regulations in the Republic of Slovenia, and the existing valuation methods of easement on land were analysed. Owing to inadequate data on real estate market operations, the impacts of an easement on land market value were objectivised using a survey of potential real estate buyers in Slovenia. For better objectivity of survey results, interviews with 203 residents from all the statistical regions were conducted. According to gender, education, status on the land market and place of residence, the sample obtained of interviewees is representative of the Republic of Slovenia. On a hypothetical land specimen, how the interviewees assessed the land value decrease depending on the extent and situation of land encumbered by the easement, and the monthly easement compensation amount was established. Analysis results showed that statistically characteristic differences (p > 0.05) existed concerning land value decrease between the responses of groups, according to gender and age, education and property status on the land market. In contrast, no statistically characteristic differences existed between the responses of groups divided as to place of residence (p < 0.05).

Keywords

• land valuation
• easement
• impact of easement on land value
• survey of potential land buyers