Real Estate Market Data & Value Spreadsheet‘s Boom in

Lithuania

Report’s Authors:Steponas Deveikis, Saulé Deveikyté Biruté Galiniené, Lina Lizunaité

BVC‘2013, Harpa, Reykjavik, 20th September, 2013

References:

Centre of Registers; Real Estate Agencies:

State Institution on Ober-Haus RE,Property Valuation Re&Solution, etc.Oversight Agency; State Universities

Introduction …The Centre of Registers

in Lithuania administrates the registers of real property, legal entities, and

addresses, some of the most important

state registers, fulfils the functions of a

traditional cadastral agency. It is

authorized to perform valuations for public

needs.

Website of the Centre of Registers is the main source

Legal framework for the Real property administration in LT

Law on Real Property Cadastre; Law on Real Property Register; Law on Land; Law on Construction; Law on Territorial Planning; Law on Real Property Tax; Law on Background of the Property and

Business Valuation. Some Government Rules and Regulations

Dynamics of real property market transactions

Annual packet of transactions

Value zones and models

Transactions for mass valuation

Values established by mass valuation

Ratio studies information

Assessed valuesStatistics of the Dwellings stock

Real property cost tariffs

Data for the Department of

Statistics

Area-adjustment coefficients

Information for social support

Presentation of data and solutions via the Internet to

the mass valuation specialists of the Centre of Registers

Mass valuation

Comparable objects of real property

Value spreadsheet with time-adjustment function

Number of real property transactions self-service

Analysis of transaction pricesself-service

Forecasts in the process of development

Appeals against real property taxable values (the system for information provision and sharing between the Centre of Registers, the State Tax

Inspectorate and the complainant – in the process of development )

Real Property RegisterSocial Welfare Division of

Municipalities

Spreadsheet for non-registered property

Presentation of the mass valuation results via the Internet (to external users)

Provision of real property market data via the Internet (to external users)

Real Property Valuation and Market Analysis: Main Activities

Property Market Data Collection

After the formation of a new property it must be surveyed and included in the Real Property Cadastre

Rights to real property are registered in the Register of Real Property

Data bank of Real property market

Central data bank of the Cadastre and the Register of Real Property

After the transaction notaries send information within 24 hours, later the purchaser of real property registersthe property in the RP Register.

The contract price is also enteredinto the database

1 000 000

Since 1998More than 6 million units

RE market analysis: Apartment prices trend

Vilnius, Karoliniskes, 1998 - 2009

Source: Centre of Registers, Lithuania

RE market: HPI (LT; OHBI; USA)

Actual Housing Price Index

The Real Estate Price Index of sold flats in LT (country level):

Red line – comparing prices with Quarter 4, 1998Blue line – comparing prices with previous Quarter

Valuers’ Activities and New Technologies:Sales Data On-line Search System

Type of real estate use

Transaction type

Sales dataWall material

Price level

Object No in transaction

Zone

Area

Municipality, address

Search Result by Internet

Spreadsheet for Determining Market Value with Time Adjustment Function

RE market: market price trends

Valuation and GIS visualization

Valuation and GIS visualization (2)

The graphical visualization is used in mass and individual valuation practice. The framework of mass valuation maps is envisaged to public and valuers by internet as an additional material.

Spatially Enabled Society The idea of interaction between different sectors

of GIS and valuation practice is in action at the moment.

Data integration concept is necessary to be considered as a key element of a Spatially Enabled Society. Data integration involves combining data residing in different sources and providing users with a unified view of these data.

A new generation of Internet products, such as Google Earth, Maps.lt, are stimulating a greater interest and use of digital Geography in society.

Re-use of Market Data

Valuers’ enterprises have prepared web applications to demonstrate a Property transactions’ value maps. Data and digital maps are an essential raw material and give new possibilities to analyse and visualise market data.

Some companies’ websites suggesting real property spread-sheets / property market prices visualization

Web-sites Started since

Operate by manager

Parent company Comments

www.untu.lt 2011 RE/MAX (Lithuania)

RE/MAX Visualization in map

www.bustokaina.lt 2012 RE/MAX Bravo RE/MAX Visualization in map

www.ntkaina.lt Nov. 2012

Ober-Haus Ober-Haus Google maps

www.ntvertinimas.lt n/d n/d n/d  

www.ntpatarejas.lt 2012 n/d DNB  

www.ntsandoriai.lt March 2013

UAB Atvira erdve

Alna Software  

www.ntguru.lt May 2013

  Newsec/Re&Solution Mobil application; GPS; GooglePlay, iTunes

Mobile technologies All companies’ websites

presented in previous table use the data of the Centre of Registers.

Mobile application of the value spread-sheet with support GPS, Google Play, iTunes is developed in Lithuania by Newsec/Re&Solution

Value and price is being visualized … in your pocket.

Juridical challenges New regulations, adopted in Lithuania in the middle

of 2012, have stronger attitude on using real property market data for the preparation of valuation report. However, the provision of real property market data from Centre of Registers to external users became complicated. Further provisions or an open access to property market data is not clear at the moment in Lithuanian individual valuation practice. Centre of Registers discontinues many possibilities to get property market data in greater packages, e. g. annual package of market transactions.

Final Remarks and Conclusions

The main function and mission of the Centre of Registers are the administration of three main state registers, such as Real Property Register and Cadastre, the Register of Legal Entities, and the Address Register. In fact, the Centre of Registers acts as a centre of creating and developing register-data-based systems.

The Real Property Register and Cadastre contains data of all real property objects registered in Lithuania. Data in the Register and Cadastre is public including cadastral maps and most of ………… cadastral files and copies of transaction documents.

Final Remarks and Conclusions (2)

The market research and property valuation unit – Real Property Valuation department provides to the clients statistical and actual authentic data on real property market. The database contains actual data on all real property transactions made since 1998. The mass valuation is a primary function of this department and mass valuation process is performed yearly. The output of mass valuation – an average market value of land and buildings is used for various economic and taxation needs.

The contradictions between the Centre of Registers and Property data users rise constantly. It’s Market and Monopoly…

Final Remarks and Conclusions (3)

The State Enterprise Centre of Registers is self-economic, self-financing entity, and their supplied data is not free of charges; also many Data re-use in public or private business is prohibited by Centre of Registers.

The attitude of the Centre of Registers is not reasonable. Lithuanian proverb says “a dog on the hay“. The discussions on the public mission, interrelationship between business society and Centre of Registers, and national inputs to property administration system are needed and desirable in Lithuania.

Thank you for attention

Thank you for your attention, BVC team