Property Valuation Challenges in the Case of Selected African Countries
Real property valuation has importance not only for developing countries but also for developed countries so as to increase the socio economic development of the community. In relation to Real Property valuation in Africa countries, valuation becomes interlinked and multi-dimensional in nature. The major challenges of valuation in African countries include absence or poor valuation education and training, absence of institutional professional representation, absence of qualified development regulations, lack of valuation standards and transparent property price information, among others. Yet, the need for professionalism in property valuation is a critical component of …show more content…
A significant number of real property does not have qualified valuers yet they are very active and influential in the property market. Hence it is difficult to find formal and reliable reference sources of property value information. As a result the property market is highly distorted and property prices in most cases do not follow macroeconomics trends and fundamentals such as inflation and interest rates. Unquantifiable social factors also play an important role in determining the value of property including such things as relationships to valuation performance (IVSC, …show more content…
In the country the Sales comparable data is not readily available. Which refers comparables information on nature of sale, improvements and incomes generated is not readily available. While valuation is to be carried out by government valuers this is many times riddled with corruption. Further more urban agricultural land valuation state agricultural marketing boards have a tendency to manipulate the prices of these commodities and therefore they do not have or keep true returns from the land so any sale comparison of the market value of land obtained through using the income approach and sales data has a large discrepancy. Uganda In line with IVSC(2015) the major challenges that the valuation profession face in Uganda include: challenges associated with high level of property value speculation, limited public awareness of the services of valuers, lack of reliable property database or price index, slow adaptation to international valuation standards, inadequate research on pertinent valuation issues, lack of professional integrity and gaps in the curricular of graduate courses of the major universities offering valuation related degrees.
2.3.3 Property Valuation Challenges in
Real property valuation has importance not only for developing countries but also for developed countries so as to increase the socio economic development of the community. In relation to Real Property valuation in Africa countries, valuation becomes interlinked and multi-dimensional in nature. The major challenges of valuation in African countries include absence or poor valuation education and training, absence of institutional professional representation, absence of qualified development regulations, lack of valuation standards and transparent property price information, among others. Yet, the need for professionalism in property valuation is a critical component of …show more content…
A significant number of real property does not have qualified valuers yet they are very active and influential in the property market. Hence it is difficult to find formal and reliable reference sources of property value information. As a result the property market is highly distorted and property prices in most cases do not follow macroeconomics trends and fundamentals such as inflation and interest rates. Unquantifiable social factors also play an important role in determining the value of property including such things as relationships to valuation performance (IVSC, …show more content…
In the country the Sales comparable data is not readily available. Which refers comparables information on nature of sale, improvements and incomes generated is not readily available. While valuation is to be carried out by government valuers this is many times riddled with corruption. Further more urban agricultural land valuation state agricultural marketing boards have a tendency to manipulate the prices of these commodities and therefore they do not have or keep true returns from the land so any sale comparison of the market value of land obtained through using the income approach and sales data has a large discrepancy. Uganda In line with IVSC(2015) the major challenges that the valuation profession face in Uganda include: challenges associated with high level of property value speculation, limited public awareness of the services of valuers, lack of reliable property database or price index, slow adaptation to international valuation standards, inadequate research on pertinent valuation issues, lack of professional integrity and gaps in the curricular of graduate courses of the major universities offering valuation related degrees.
2.3.3 Property Valuation Challenges in