The influence of ecological burdens on property value and use

The classic methods of property valuation, however, are not suitable for the quantification of the decreases in value. Using the method of the environmental risk prognosis, the environmental based valuation method quantifies the risks of ecological burdens in monetary units and therefore enables the valuation of a realistic property value. Besides the effects on the value, ecological burdens put properties into the condition of vacancy or derelict land and they withdraw so much from the economy circulation. This destiny is often no immediate result of the ecological burden but of being not able to estimate their financial risks, which prevents potential buyers or investors to develop the property. Only planning reliability and certainty of law based on risk estimations enables the reuse of fallow areas and reduces the use of alternative locations with lower risk, like greenfields.