Property value is calculated in many different ways depending on the type of property. The principle is that the property value of each property, each year, is evaluated based on the purchase price of similar properties in the same market areas the previous year, taking into account the size, age and condition of the property.
Types of real estate that are not bought and sold in an active market, are valued by other means, but the property value of such properties also aims to estimate their potential sale price based on size, location, age and condition.