Re: Banks and property costs


On projects I have worked on in Spain the construction costs are calculated based on the gross built area in m2 (i.e. to outside of walls) with terraces and the like taken at half the normal price/m2. Sales costs however are normally based based on the net usable area, i.e. inside areas.

Depending on the bank they could use a similar system but normally, for mortgage purposes may use an independent valuer, e.g. a local representative of the company TINSA or similar.

I have heard of some countries using prices/m3 but have not come across it myself.

Hope this he;ps

Best regards

Terry English