An evaluation of property valuation practice in Sub-Saharan Africa

Awuah, Kwasi Gyau Baffour; Proverbs, David; Lamond, Jessica; Gyamfi-Yeboah, Frank

Abstract

Real estate markets in Sub-Saharan Africa (SSA) are beginning to mature partly due to increased business and investment activities in the last decade and partly due to initiatives to improve transparency in market operations. Professional and ethical property valuation services are vital to the sustenance of the current real estate business and investment activities in the region as they promote transparency and support efficient operation of property markets.

Serious concerns

However, there are serious concerns over the standard of property valuations produced in the region. These concerns relate to valuation errors, in particular, wide variation in valuations.

Ghana is one country in the region where real estate business and investment activities continue to increase, and there are growing concerns over high variation in valuations expressed both among real estate valuers/valuation surveyors and within the wider real estate sector. Like the rest of the Sub-Saharan Africa (SSA) region, these concerns are largely based on anecdotal evidence, and speculation that paucity of property market data is one of the main causes.

Using empirical evidence from Accra, Ghana, as a case study, the aim of the research was to evaluate property valuation practice in SSA. It sought specifically to:
◾estimate the extent of variations in valuations undertaken by Ghanaian valuers/valuation surveyors
◾identify appropriate property market data sources in Ghana
◾develop a property data collection template to support property market data collection for valuations
◾outline guidelines for effective property market data collection to improve valuation practice

• Report Type: Project Report
• Publication Date: Feb 1, 2016
• Deposit Date: Mar 8, 2017
• Peer Reviewed: Peer Reviewed
• Keywords: evaluation, property, valuation, practice, Sub-Saharan Africa
• Public URL: https://uwe-repository.worktribe.com/output/914575
• Publisher URL: https://www.rics.org/globalassets/rics-website/media/knowledge/research/research-reports/an-evaluation-of-property-valuation-practice-in-sub-saharan-africa-a-case-study-of-ghana-rics.pdf
• Contract Date: Apr 17, 2019