Real Estate Valuation in Global Markets

Citation

O’Rourke, A. (1998), "Real Estate Valuation in Global Markets", Journal of Property Valuation and Investment, Vol. 16 No. 3, pp. 343-344. https://doi.org/10.1108/jpvi.1998.16.3.343.1

I have been trying to write an article on international valuation for several years, but was unable to get much information. Now there is a new book covering valuation in 21 countries from Albania to Zimbabwe, Real Estate Valuation in Global Markets, published by the Appraisal Institute.

The cover of the book is intimidating. It looks like a boring textbook, so I procrastinated on reviewing it. Finally I took it with me on a recent trip to an appraisal conference in Chicago. I always take stuff with me on the plane that I can’t seem to get around to reading otherwise.

Each chapter is written by a separate person, with the same general format. Sometimes the writing was dry, but I was pleasantly surprised to find many fascinating facts about valuation in other countries. In almost every chapter, some of the personality and opinions of the writer showed through, making it much less boring. Each chapter covers one country, with standard topics such as political structure, property rights, language, currency, units of measure, inflation, typical lease structures, valuation standards, licensing/certification requirements, appraisal reporting requirements, approaches to value (some use five, some use one), and availability of data.

After reading a few chapters, I started concentrating on topics I find particularly interesting, such as property rights, approaches to value, and availability of data. You could do the same with the topics you prefer. If you get bogged down reading the introduction, like I did, go directly to a few countries and skim through looking for what you find interesting. The introduction provides a good overview but is somewhat academic and difficult to read for Americans due to the use of British phrases.

I turned first to the country I knew something about, Canada. I could have really used this chapter when I spoke in Victoria earlier this year. The Canadian appraisers kept mentioning the “Torrens” system. Now I know it is their land registration system, originally developed in Australia.

After reading about all the countries where information on sales is very confidential, even more than in the US non‐disclosure states, I am never going to complain about lack of data here.

Many countries rely mostly on the cost approach, and valuers are licensed as engineers or architects. Although appraisal licensing is recent in the USA, many countries have had licensed valuers for some time.

The way in which the formerly communist countries are going through privatization, and the effect of history on valuation in Western European countries, was fascinating.

The book focuses on commercial valuation topics, but many chapters also include some information on residential valuation.

So how did this book help my appraisal business? I may get a chance to appraise in another country, but probably not. Mostly what I got was a perspective on valuation and real estate in this country. In the USA we tend to think our way is the best way, and the only way.

I do not know how many copies will be sold of this hardback book but it was time consuming and expensive to produce, and I compliment the Appraisal Institute on publishing it. There is not an index, but there is a good glossary and information on the International Valuation Standards Committee. This book is definitely worth the money if you have any interest in valuation in other countries.