*5.1. The Urban Value Index (Ivu)*

Urban quality and building quality are multidimensional concepts that can be interpreted from different points of view and perspectives [37]. One possible definition refers to the analysis of real estate values, to some degree a synthesis, effect and overall measure of these phenomena. The assumption is that the willingness to pay different prices suggests a greater or lesser appreciation of assets, not only in relation to their intrinsic characteristics, but also to the qualities expressed by the urban contexts in which they are located. This latter approach was used to construct the urban values index.

The starting point is defined by the OMI Zone (acronym for the Revenue Agency's *Osservatorio del Mercato Immobiliare*, Real Estate Market Observatory): a "continuous portion of the municipal territory that reflects a homogeneous sector of the local real estate market, with a uniform appreciation of economic and socio-environmental conditions". This uniformity is translated into a homogeneity of characteristics related to position, urban planning, historical-environmental and socio-economic qualities of settled areas, and the offering of urban services and infrastructures. The territorial delimitation of a homogenous market area thus passes through the analysis of the homogeneity of socio-environmental and economic conditions and location: first and foremost the requisite of centrality in terms of the presence of functions, accessibility to public and private facilities and services of varying degrees and levels, the level of urban and suburban transportation services, vehicular connections, the presence of schools, healthcare and sport facilities, shops, tertiary services, etc.

The index defines the distance (in terms of real estate values and therefore of market appreciation) between different urban contexts; it is calculated based on the maximum OMI market value on a municipal basis (for residential buildings in good condition) and the OMI market value where the property is located, according to the following formula:

$$I\_{\rm vu} = \
a V\_{\rm OMI} - q\_{\prime} \tag{1}$$


### *5.2. The Use Index (Iut)*

The use index represents the yield (or measure of its efficiency) tied to the use of an asset in relation to its occupancy. The index consists of two parameters describing both the actual degree of use in terms of surface area, and the ability of occupants to pay property management/utility costs (electricity, water, gas as well as services such as waste collection taxes, etc.).

The first parameter is linked to the management of spaces: parameter P1 expresses the relationship between the total building area and the portion occupied. This aspect indicates the degree of use of the property, or its underutilisation which permits the allocation of other activities (instrumental to the organisation of the Institution as well as social and/or cultural).

The second parameter, P2, expresses the capacity of the asset to achieve financial autonomy under current conditions of use. This parameter was envisaged as many public buildings are often granted (to non-profit associations) free of charge, meaning that users do not contribute to utility costs.

The index is expressed as follows:

$$I\_{\rm ult} = \left\{ \frac{P\_1 + P\_2}{2} \right\} = \left\{ \frac{\left(\frac{S\_{\rm acc}}{S\_{\rm trt}}\right) + \left(\frac{K\_{\rm acc}}{K\_{\rm att}}\right)}{2} \right\} \tag{2}$$


Structured in this way, the index will have a value of 1 when the building is completely occupied and when utility costs are fully paid by occupants. An index of 0.5 generally refers to intermediate situations, such as total occupancy but no payment of utility costs by occupants (buildings rented free of charge), or situations in which the building is only partially occupied (suggesting better strategies for organising spaces) and utility costs are not covered entirely by occupants.
