Sales evidence shows that large sections and corner suits suitable for development have increased in value by much more than smaller sections, especially in older areas of the city where development is taking place. for these properties the Land Value may have increased significantly more than the total (Capital Value) of the property.
If the Land Value (LV) has increased at a higher percent than the Capital Value (CV), then the Value of Improvements (VI) must decrease.
VI = CV - LV