Changes in investment properties account for the years ended December 31, 2021 and 2020 are as follows:

	Land		Land Improvements			Building			Total
	(in million pesos)
December 31, 2021
Balances at beginning of the year		728		4			163			895
Net gains (losses) from fair value adjustments charged to profit or loss		43		(1	)		(8	)		34
Balances at end of the year		771		3			155			929

December 31, 2020
Balances at beginning of the year		607		5			166			778
Transfers from property and equipment		70		—			4			74
Net gains (losses) from fair value adjustments charged to profit or loss		51		(1	)		(7	)		43
Balances at end of the year		728		4			163			895

Investment properties, which consist of land, land improvements and building, are stated at fair values, which have been determined based on appraisal performed by an independent firm of appraisers, an industry specialist in valuing these types of investment properties.

The valuation for land was based on a market approach valuation technique using price per square meter ranging from Php35 to Php35 thousand. The valuation for building and land improvements was based on a cost approach valuation technique using current material and labor costs for improvements based on external and independent reviewers.

We have determined that the highest and best use of some of the idle or vacant land properties at the measurement date would be to convert the properties for residential or commercial development. The properties are not being used for strategic reasons.

We have no restrictions on the realizability of our investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Repairs and maintenance expenses related to investment properties that do not generate rental income amounted to Php78 million, Php70 million and Php65 million for the years ended December 31, 2021, 2020

Rental income relating to investment properties that are being leased and included as part of revenues amounted to Php48 million, Php51 million and Php49 million for the years ended December 31, 2021, 2020 and 2019, respectively. See Note 10 – Leases.

The above investment properties were categorized under Level 2 and Level 3 of the fair value hierarchy. There were no transfers in and out of Level 2 and Level 3 of the fair value hierarchy.

Significant increases (decreases) in price per square meter for land, current material and labor costs of improvements would result in a significantly higher (lower) fair value measurement.