FIG Comm 9 is focussed on the economic strand of surveying and
specifically the valuation/appraisal of real estate (land and buildings).
Comm 9 also looks at compulsory acquisition, sustainable land and property
taxation, new technologiessuch as AVMs, informal land markets, new sectors
such as naturalecosystem value and international standards such ILMS and
IVSC valuation standards and methodology. Comm 9 is also engaged with
numerous agencies such as World Bank, UN FAO, GLTN, and IFC.
Valuation, being the estimating of value of all kinds of real estate by
valuers and appraisers for various purposes, including market value,
property taxation, eminent domain, investment, redevelopment and
refurbishment, and for both public and private purposes;
Investment in real estate, investment planning and real estate
investment vehicles;
Real estate finance, development finance, land use feasibility and
viability planning;
Real estate economics, land markets and market analysis (both formal
and informal);
Land valuation, land compensation and compulsory purchase/eminent
domain;
Sustainable land and property taxation models and enabling
technologies;
Enabling the adoption of international standards such as IVSC and
ILMS;
Management of all kinds of real estate at all levels;
Asset management for corporate private and public sectors;
Natural capital and ecosystem valuation methodologies and practice;
Professional practice and qualification routes – the embedding of
valuation as a core global surveying skillset.
Mission Statement
Professional valuations are vital to a healthy land/property/asset market
and a stable economy, forming the basis of performance analysis, financing
decisions, transactional or development advice, dispute resolution,
taxation, acquisition and various statutory applications. Robust practice
standards form the basis of high-quality valuations.
Key Goals
Work with all commissions to ensure valuation/appraisal contributes
to their success by providing relevant evidential benchmarking
Ensure valuation/appraisal remains relevant through the 4th
Industrial Revolution and is key to achievement of UN SDGs
Continue to work on defining ‘Social Value’ and informal assets
Natural and ecosystem value
Emphasis on land acquisition, compensation, sustainable taxation,
land value capture and infrastructure/urbanisation – ILMS/LADM
connection
Provide support for changing face of Valuation Education and
collaboration with other bodies (IVSC, GLTN, UNFAO)
General
Valuation and valuation principles have come of age and are in many ways
the end game for all other aspects of surveying. Accurate and standards led
valuation/appraisals leads to stable land & property markets, the
application of sustainable taxation systems, fair compensation during
acquisition and the establishment of legitimate land rights. Good valuation
is a prerequisite for any form of functioning land administration system and
during the next period Comm 9 would like to bring valuation and its
principles back to the core of the global surveying profession. During this
period Comm 9 will be looking at numerous issues, several focussed on the
economics of fungible land & real estate markets, and the effects that they
can have on development, financial stability, services through taxation,
informal markets and investment processes. During this period Comm 9 will
seek to;
Advance the professional practice of surveyors/valuers/appraisers
and property managers working in all areas of real estate valuation and
management;
Research and publish “best practice” for the benefit of surveyors,
valuers and property managers in different jurisdictions and sectors of
the industry. This will benefit the global surveying community and
improve our services to the wider public;
Help embed and aid the adoption of international standards within
the global surveying community;
Actively take part in initiatives such as LADM II (and technologies
such as AVM, Blockchain etc) and provide valuation expertise to other
global projects;
Develop an understanding of emerging sectors such as natural capital
and ecosystem value;
Further develop collaboration on understanding valuation in
the context of unregistered and informal land markets;
Work with Comm 7, 8 (and UN agencies) on understanding land
acquisition and fair, propoor compensation processes;
Help underline the centrality of ‘valuation’ to the New urban Agenda
and land value capture techniques;
Embed valuation principles within the FIG SDG taskforce;
Facilitate and generate the exchange of information, knowledge and
experience between surveyors for the benefit of the profession, our
clients and the wider public;
Publicise and promote the work of surveyors to the public,
particularly to young people, governments and non-government
organisations and to enhance the value and perception of the value of
surveyors and the services they can deliver, especially in support of
the UN Sustainable Development Goals (SDGs) and the UN Habitat New Urban
Agenda (NUA);
Co-operate and work with fellow commissions; help bring valuation
knowledge to geospatial information;
Help develop professional practice and qualification routes and
embed valuation as a core global surveying skillset;
Further develop collaboration with international agencies such as UN
GGIM, UN FAO, UN Habitat, World Bank and IFC.
According to the United Nations1 urbanization prospects, by 2050 68 % of
the world’s population will be living in urban areas. To ensure a
sustainable development and ensure access to services for all, including the
vulnerable, requires considerable effort from all involved. It touches upon
themes such as urban resilience (social well-being, health, services,
climate), informal settlements, affordable housing and financial
sustainability among others.
Policy issues
Analyse present and future challenges for small, medium, large, and
megacities, in terms of urban resilience, climate change, housing and
informal settlements, and fiscal health
Contribute to the dissemination of best practices of how spatial
planning can contribute to address the present and future urban
challenges
Investigate the potential contribution of land-based finance to
addressing these urban challenges
Develop an audit tool for the assessment of sustainable municipal
finance, fiscal health and land-based value capture tools in relation to
the urban challenges
Chair
James Kavanagh, Unites Kingdom
jkavanagh[at]rics.org
James Berghan (New Zealand)
james.berghan[at]postgrad.otago.ac.nz
Claire Buxton (New Zealand)
clairelouisebuxton[at]gmail.com
Working group 9.1 - Manual and due diligence protocol for the ‘Valuation
of Unregistered Lands and informal property’
Introduction
UN Habitat GLTN and FIG have been collaborating for several years on
understanding the global 70% (in most cases much higher on a national basis)
of the land & real estate market that operates on an unregistered and
informal basis. GLTN and RICS both launched complimentary research and
guidelines at FIG Istanbul 2018
Comm 9 would like to bring this initiative to professionals and
practitioners by helping produce a field-based protocol for the valuation of
unregistered land. Valuing unregistered land highlights important strengths
but also challenges to current valuation practice. The previous output found
that valuers/appraisers have shown industry and innovation in adapting
valuation methods and in this sense, local valuation practices have been
quite resilient. However, there are also challenges specific to the
valuation of unregistered land. Undervaluation is a major challenge, as is
overvaluation in some instances. Overall, most of the conflicts associated
with compensation for the expropriation of unregistered lands arise from the
top-down nature of the valuation process, a narrow view of ‘value’ as
limited to only legally created structures, and an overly strong reliance on
asocial valuation techniques for establishing value. The reports also
highlighted the chronic lack of professional and technical capacity in this
sector. Another major finding was that various forms of proof of tenure (tax
and utility bills, affidavits from neighbours, occupation proof etc) are
admissible in all three markets during lending and dispute resolution
processes, this a major insight into how informal land markets operate
outside of formalised titling and registration systems.
Policy Issues
The potential output has enormous ramifications for practice and could be
extremely influential. It is important to maintain the collaborative nature
of the initiative and to include other significant organisations such as the
International Financial Corporation (IFC), ILMS coalition and International
Commission 9 has an important role to play in bringing
economic and valuation issues to bear with regards to technology advances
such as Automated Valuation Models (AVMs), Blockchain, GIS and technology
enabled taxation systems. This workgroup will also lead on the Comm 9
involvement with the FIG taskforce on Sustainable Development Goals (SDGs).
Valuation/appraisal is central to the achievement of several SDGs and is a
major enabling element of the New Urban Agenda.
Policy Issues
Valuers need to be aware of the impact of technologies such as big data
and automated valuation and are strongly recommended to increase their
understanding. In certain cases, such as with low-risk valuations, the AVM
may completely replace the valuer. In many instances however, the valuer and
the AVM will need to work hand in hand, with the professional valuer
ensuring that data used by the AVM is properly checked using forecasts, then
the results are analysed and interpreted, and reported on in an
understandable way for the client. The valuer will need to embrace
technology or be overtaken by it. It is hoped that the use of AVMs will
ultimately make it possible for professionals to spend more time working on
complex valuations.
