FIG Commission 9
- Valuation and the Management of Real Estate
Term 2007-2010
Highlights
Commission Chair2007-2010
In 2010 Commission 9’s activities concentrated on the
FIG Congress in Sydney. Commission 9 had its annual meeting and
the active Working Groups held their planning sessions. In
addition, several presentations on the commission topics were
presented in eight technical sessions. Participation in
technical sessions and sessions was very active.
WG 9.1 Compulsory Purchase and Compensations in Land Acquisition
and Takings continued its work with the recommendations on Compulsory
Purchase and Compensations. The recommendations were published as the FIG
Publication No. 54 “Compulsory Purchase and Compensation – Recommendations
for Good Practice”.
In addition, the guidelines for land acquisition in developing countries
based on presentations in Hanoi Conference 2009 was launched in Sydney as a
FIG Publication No. 51 “Hanoi Declaration: Land Acquisition in Emerging
Economies”.
Work Plan
Terms of reference
Valuation - the estimating of value of real estate by valuers and
appraisers for various purposes, including e.g. market value, property
taxation, eminent domain, claims of damage or impact on value by some cause
or event and acquisitions for public use or public policy;
Investment in Real Estate and Investment Planning;
Real Estate Investment Vehicles;
Real Estate Finance, Development Finance, Land Use Feasibility Planning
Real Estate Economics, Real Estate Markets and Market Analyses
Management of Property, as single asset or by management companies
Management of Property Systems to ensure efficient use of public and
private resources
Management of Public Sector Property.
Mission statement
The real estate markets have been expanding and globalizing rapidly and the
development is continuing. This means that there is a strongly growing need for
uniform practices in real estate economics. International actors need reports,
analyses and services made in consistent bases but also in innovative ways,
which give added value to the clients in the expanding real estate markets.
Standards, information and guidance for best practices together with
harmonisation are asked in addition to people with good knowledge and know-how
of different systems around the world. Surveyors are strongly involved in the
international and local real estate markets thanks to the education of surveyors
that gives a very good basis in real estate in many countries. In addition
surveyors are taking care of basic registers and operations in real estate
although mainly from the point of view of the public sector. FIG Commission 9
takes care that the knowledge of surveyors will cover the whole field of real
estate economics contributing in that way positively to the national and global
economy and to the living conditions and quality of living of human people on
the whole globe.
Working Group 9.1 - Compulsory Purchase and Compensations in
Land Acquisition and Takings
Policy Issues
The ownership on real property is protected by constitution in most
countries. Because of the nature of the real property the right of ownership
can, however, not be unlimited but for the society it has been reserved a right
to interfere in it when it is necessary. For example, if the society needs a
land area of a real property for a street, the owner has to convey land for that
purpose, if not voluntary then by compulsion. For this interference there are
normally strict preconditions in order to protect the functions of the free
market. The most critical point concerning expropriation may be the question of
compensation. Will the compensation statutes, valuation methods and manners
really lead to full and just compensation? The rules for compensation depend on
the legislation of each country. The main idea in most countries seems to be
that the landowner?s financial situation shall remain the same despite the
expropriation. No one should be poorer because of expropriation but also not
richer. Only economic values will be compensated but non-economic not. There are
no strict rules that the owner has to be able to purchase a similar property for
the same price as compensated although the basic idea of compensation strives to
this, and normally this can even be expected. But if that cannot be done would
it lead in some cases to an unjust situation where the landowner might even
loose his/her living possibilities? It seems that there are also many countries
where the rules or practices in compulsory purchase and compensations are still
weak and the know-how narrow. Support to knowledge in land acquisition,
compulsory purchase and compensation is needed. New perspectives and a broader
discussion could add to drivers for further development. This subject is not
covered by valuation standards so there is need for guidance from FIG. It can
contribute in developing and providing the capacity needed.
Chair
Prof. Kauko Viitanen
HUT
Finland
E-mail
kauko.viitanen[at]tkk.fi
Co-Chairs
Prof. Thomas Kalbro (Sweden), e-mail
kalbro[at]infra.kth.se
Mr. Henning Elmstrom (Denmark), e-mail:
elmstroem[at]plf.dk
FAO (SDAA) Mr. Paul Munro-Faure, email: Paul.MunroFaure[at]fao.org
Working Group 9.2 - Improving Slum Conditions through Innovative
Financing
Policy Issues
Slum is a major challenge for our joint development. Cities are the engines
for development and viable cities for the rich must also be cities for the poor.
Sustainable cities are a prerequisite for development on the whole - not only
for poor countries or poor people. Problems that follow a rapid urbanisation
make cities increasingly subject to dramatic crisis, - problems like
unemployment, deterioration of existing infrastructure, environmental
degradation and inadequate shelter. One out of six world inhabitants live in
slums. Without concerted action by governments and their partners, today?s
almost 1 billion slum dwellers will be 2 billions by 2030
Support to slum upgrading has focused on improved access to land,
construction economics and providing basic services. Structural issues of
financing and market conditions have often been overlooked. A change is urgent!
Providing efficient financing facilities for slum upgrading and basic
infrastructure on a massive scale will be required to meet the Millennium
Development Goals.
The first UN-Habitat global assessment in housing finance conditions and
trends of the world shows that a quite limited group of experts is involved
today. New perspectives and a broader discussion could add to drivers for
further development. The scope and actors need broadening from ?just? a
donor-poor peoples concern.
Economic development depends on efficacy of financial systems. A window of
opportunity exists in creating a sound and sustainable market for low-income
housing. FIG can contribute in developing and providing the capacity needed.
Chair
Mr. Bengt Kjellson
Sweden
E-mail:
bengt.kjellson[at]lm.se
Co-Chair
Ms. Ann Jennervik
Sweden
E-mail:
annjennervik[at]hotmail.com
Working Group 9.3 - Diagnostic Tools and Prescriptive Practices
for The Valuation Profession
Policy Issues
The valuation profession in many countries is still rather weak and the
profession has not always benefited from good education in valuation technology
and theory. Consistent and logical guidelines are poor or even missing in some
markets. There are no current tool sets to determine prescriptive practices for
these poorly functioning valuation systems. What is needed is a systemized way
to evaluate the status of a country's valuation profession and then
recommendations to bring the profession up to international standards, relative
to their individual needs. This is particularly important in developing
economies.
Chair
Mr. Steven Nystrom
USA
E-mail nystrom[at]tampabay.rr.com
Working Group 9.4 - Review of Valuation Methods and Standards
Worldwide
Policy Issues
Changes in valuation methods and standards, globalisation.
Chair
Mr. David Smejkal
Czech Republic
E-mail: David.Smejkal[at]a-consultplus.cz
Working Group 9.5 - GIS-analyses in Real Estate Market Analyses
and Valuation
Policy Issues
The world is digitalising very fast. Also in valuation and real estate
analyses the digital methods are gaining a footing. Spatial data is nowadays
mainly digitalised, and automated valuation models (AVM) are used especially in
mass appraisals. The valuers and real estate analysts have to adopt the use of
digital tools and methods to be able to serve their client even in the future.
Otherwise there is a threat to become a bystander or an assistant when other
expert groups expand their scope. The idea for the WG is especially to get
discussions about the new developing digital methods in valuation and real
estate market analyses in FIG. Participants will get information of new ways to
do analyses, get new ideas and test old ones. In addition people will
participate much eager when they feel they really can learn something new in the
FIG working weeks and conferences.
Chair
Mr. Dieter Kertscher
GERMANY
E-mail:
dieter.kertscher[at]gll-bs.niedersachsen.de
Co-Chair
Mr. Steven Nystrom (USA), E-mail:
nystrom[at]tampabay.rr.com
