Classification and Valuation of Municipal Real Estate for Execution of Municipal Functions

Abstract

The quality of satisfying the social and economic needs of residents by the municipality depends on the effective use of municipal real estate, its abundance and quality. The municipal property makes up the basis for their economic activities.To fulfil one of the main municipal goals, i.e. to promote and develop local government, a great deal of attention must be directed to the improvement of municipal real estate management, as well as the optimization and increase of management efficiency of real estate necessary for fulfilling municipal functions. Since municipalities own a great deal of real estate unsuitable for carrying out their functions, the paper presents a methodology for reducing the amount of real estate objects redundant for municipal functions. To achieve this, a distinction between functional-objective real estate for fulfilling municipal functions, and real estate that no longer has such a purpose has been made.