The Government has adopted a historical decree for the land reform “On Approval of Methodology of Normative Monetary Evaluation of Land Plots”, ProAgro Group reports this referring to the Ministry of Agrarian Policy and Food.
Previously, there were three different valuation methodologies at the same time. As a consequence, the appraisal figures of neighboring plots could have been very different from each other. The community had to develop and approve three different types of technical documentation. And that was a problem because many economic issues were tied to the NME of land: without it one could neither pay for the land, nor sell the property, nor rent it out.
Now the normative monetary evaluation will be determined as follows: the area of the land plot to be evaluated is multiplied by a well-defined norm of capitalized rent income and five coefficients, which depend on the location, purpose and quality of the land asset.
In other words: how close the land plot is to major cities or resort and recreational facilities; whether there is any effect of radiation pollution; what its intended use is; and what regional and zonal factors of its location are, will all influence the final amount of the NME.
