Eres : Digital Library : Works

Paper eres2011_83:
Municipal Development Tax (MDT) in the Lisbon Metropolitan Area (LMA) – How Does it Relate to the Real Estate Market?

id eres2011_83
authors Carvalho, Joao Manuel
year 2011
title Municipal Development Tax (MDT) in the Lisbon Metropolitan Area (LMA) – How Does it Relate to the Real Estate Market?
source 18th Annual European Real Estate Society Conference in Eindhoven, the Netherlands
summary Municipal Development Tax (MDT) has been important in funding municipalities’ activities. Though initially conceived to anticipate possible negative development externalities, its role in the last 10 to 15 years has been to capture another slice of the foreseen developers’ value added. MDT is mostly referred to the physical features and costs of the envisaged development. As the business margins of real estate development undergo a very significant compression, MDF that is calculated on physical grounds and costs and not on real estate value grounds may dissuade developers to act and therefore substantially reduce municipal funding. An overview of MDF across the municipalities of the LMA provides some interesting information on MDF rationales as far as the real estate market is concerned. For this purpose we define MDF and segment the universe of developments for comparison effects, giving a primordial role to real estate developments on previous urban land (as the latter is associated to the widely consensual strategic aim of confining urban sprawl and re-using the existent city). The survey shows that municipalities do not take into account real estate expectations as far as the rationale for MDT is concerned. That points at the need for a deeper real estate culture in municipal governance.
keywords real estate development, municipal income, rationales for taxes, municipal governance
series ERES:conference
email jmc@fa.utl.pt
content file.ppt (169,472 bytes)
discussion No discussions. Post discussion ...
ratings
session E3: Development
last changed 2011/06/23 16:27
HOMELOGIN (you are user _anon_592902 from group guest) Powered by SciX Open Publishing Services 1.002