- Land, buildings and external works each require a traceable valuation basis.
- The construction cost rate and reference area must use the same definition.
- Age, damage and repair needs must not be deducted repeatedly for the same effect.
Which components are examined?
§ 6 LBG describes cost-based value as the sum of land value, building value, other components and, where applicable, fixtures and accessories. Land is generally assessed using comparable undeveloped plots; effects of the existing development that influence value must be considered separately. Building value focuses on replacement cost and technical and economic depreciation.
This statutory framework applies within the scope of the LBG. For your own preparation, it helps organise assumptions: what condition of the plot is assumed? Which buildings and external works are included? Does the construction under consideration actually exist and can it legally be used as intended? A house name or a known year of construction does not answer these questions.
Foundations: RIS – Rechtsinformationssystem des Bundes [1] · RIS – Rechtsinformationssystem des Bundes [4]
Land value is more than plot area multiplied by a location price
A land value estimate requires suitable comparable data and a clearly described plot condition. Size, shape, access, utility connections and permitted uses can vary considerably. How the existing development affects an otherwise possible use also belongs in the justification. A general district value cannot replace this comparison.
Ask to see which plot areas were included and how parts with restricted usability were treated. Also check whether a stated comparable house price already includes the land. Reading this total price as purely the building value and then adding land counts the same component twice.
Foundations: RIS – Rechtsinformationssystem des Bundes [1]
Read the cost rate and area together
Replacement cost requires an expressly stated price date and a defined scope of works. A rate per square metre of gross floor area must not be multiplied by a living-area figure without professionally resolving the difference in reference basis. Cellars, attic spaces, garages and outbuildings require appropriate recording of their construction type and quality.
Ask about the items included: are design and other ancillary costs, VAT, technical installations and external works included in the rate or shown separately? Consistency across the overall model is crucial. An invoice amount paid previously describes historical expenditure, not automatically replacement cost at the valuation date.
| Input | Explanation required |
|---|---|
| Reference area or volume | Definition, measured survey and building components included |
| Cost benchmark | Source, price date and comparable construction quality |
| Scope of works | Included fittings, ancillary costs and tax treatment |
| Special building components | Separate allowance or already included in the benchmark |
Foundations: RIS – Rechtsinformationssystem des Bundes [3]
Distinguish age, condition and economic usability
An older building may be well maintained; a newer one may have substantial damage. The construction year alone therefore does not describe the full loss in value. A technical assessment examines matters including component condition and renewals. An economic assessment also asks whether layout, fittings and use meet the requirements of the relevant market.
Separate ordinary ageing effects from specific defects and accumulated repair needs. Moisture damage already reflected in a specific condition adjustment must not appear again in full as a repair-cost deduction without checking. The cost of a measure and its effect on value need not be identical either. § 10 LBG requires material influences to be quantified separately.
Foundations: RIS – Rechtsinformationssystem des Bundes [1] · RIS – Rechtsinformationssystem des Bundes [3]
Why the calculated value needs market context
The sum of the components is the result of a valuation method. § 7 LBG requires the value to be derived from it with regard to conditions in fair market dealings. High construction expenditure, for example, does not automatically mean that buyers will pay the same extra amount for special fittings.
Require a specific justification supported by suitable data for a market-related adjustment. A universal factor for all houses in Vienna would not be an adequate explanation. If a sales comparison or income value is also available, differing assumptions must be clarified. An unjustified average does not make two unsuitable assessments more reliable.
Foundations: RIS – Rechtsinformationssystem des Bundes [2]
Fictional calculation with separate components
All assumptions are invented solely for this demonstration. They are neither construction cost recommendations nor Vienna land prices nor a real valuation report.
- A hypothetical 600-m² plot is recorded at a land rate of 500 euros per m² set for this example: 600 × 500 = 300,000 euros. In a real case, its derivation would need to be substantiated.
- For the building, the calculation uses 180 m² of expressly defined reference area and 2,500 euros per m²: 450,000 euros replacement cost. The assumed scope here includes all costs allocated to the building.
- Purely for illustration, 135,000 euros of technical and economic depreciation and 20,000 euros for additional defect effects not yet included are deducted: 450,000 − 135,000 − 20,000 = 295,000 euros building value.
- Adding a separate assumed 15,000 euros for external works already adjusted for age and condition gives 300,000 + 295,000 + 15,000 = 610,000 euros cost-based value.
610,000 euros is the result of these invented inputs. No market adjustment is invented in the absence of market data; a market value has therefore not been conclusively determined.
Your next assessment steps
Record what you have already clarified and which documents you still need.
Check the land value estimate and its comparable evidence
Clarifies plot condition, extent of area and prerequisites for use.
Where can I obtain the supporting information?
Request the plot dossier and traceable comparable data.
Break down the construction cost sheet
Prevents incorrect area bases and missing or duplicated cost components.
Where can I obtain the supporting information?
Inspect the cost source used and the calculation schedule.
Document component condition and renewals
Replaces a simple age assumption with verifiable information.
Where can I obtain the supporting information?
Invoices, building documents, inspection and any necessary technical reports.
Check deductions for overlaps
Prevents the same defect from being counted twice.
Where can I obtain the supporting information?
Place the condition description, cost assumptions and valuation calculation side by side.
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Sources and date
The following sources support this main article. For your specific property, current documents and the applicable conditions matter.
- RIS – Rechtsinformationssystem des BundesProperty Valuation Act: § 6, cost approach
- RIS – Rechtsinformationssystem des BundesProperty Valuation Act: § 7, choice of valuation method
- RIS – Rechtsinformationssystem des BundesProperty Valuation Act: § 10, special requirements for the valuation report
- RIS – Rechtsinformationssystem des BundesProperty Valuation Act: § 1, scope
Editorial date: 11/09/2026. Examples explain relationships and do not contain an individually prepared property valuation. Editorial work and sources.
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