B.Sc. in Real Property Valuation

Property Valuation is the heart of all economic activity. Everything we do as individual or as groups of individuals in different economic activities as members of society is influenced by the concept of value. A sound working knowledge of the principles and procedures of valuation is essential in all sorts of decisions relating to real estate buying, selling, financing, developing, managing, owning, leasing, trading, and in the ever-more-important matters involving income tax considerations.

The purpose for which the valuation is required and the type of property that is to be valued will determine the nature of the valuation instruction, including the techniques employed and the basis on which value is to be estimated.  purposes for which a valuation may be required include sale or purchase, rent to be paid or demanded, the amount of mortgage which could be advanced on a security, calculation of compensation payable or receivable, assessment of taxation or rating and the advisability of investment. Real Property Valuation offers a 4 year B.Sc. education program in Real Property Valuation for regular students. This Real property Valuation program aims to benefit valuers, surveyors, real estate experts, developers and managers, financers, urban planners, researchers and decision makers. However, due to lack of trained manpower these benefits were not realized. 

Despite the actual market value of real property varies greatly from site to site, depending mainly on its size, location and proximity to public services etc., in Ethiopia, however, the real property is not assessed and   valued  mainly based on these factors rather the real property is valued arbitrarily under administrative decision. Most of the time valuers are not skill full and capable to determine the market value of property for different purposes.

In order to mobilize some of the value increments to the benefit of the community at large i.e. other than those generated by the landowner’s such as public investment on infrastructure or the reclassification of rural land into urban land uses; the notion of value capture has been introduced in some countries. However, in Ethiopian cities, until now application of land incremental value is not captured properly due to lack of trained manpower in the area of property valuation.

Whether in public or private ownership of land, leasehold or freehold, valuation is not only an instrument to estimate value of properties for tax and other purposes but is also an indispensible tool of a government to influence development.  . 

The introduction of a modernized urban property valuation system is realized only when there is a proper registration, valuation, and billing of the urban property. This on the other hand, necessitates developing performance capacity of the key actors in this regard and enforcement of the rule that governs the interaction between and among different players in the urban property market.

The success of the modernized property valuation system is highly determined by the level of implementation institutional capacity in terms of proper and competent human resource, established systems including the legal framework, standards and procedures; appropriate organizational structure and crucial capabilities. These require competent human resources having the skill and knowledge of valuation in addition to developed organizational, institutional and legal framework establish reliable modern property valuation system. 

Despite education and training institutions are expected to play an essential role in supplying qualified personals that can conduct property valuation and ensure fairness in property valuation, there are no higher institutions that train professionals having the skill and knowledge of real property valuation for tax and other purposes in Ethiopia. As a result of this, there is an acute shortage of professionals in the area of valuation. 

To overcome aforementioned problems, the modernized property tax system project office under the Ministry of Urban Development Housing and Construction took the imitative to develop the curriculum on land and real property valuation among Bahir Dar University, Mekele University, Dire Dawa University and Civil Service University 

Hence, the ultimate objective of launching this program is to train a manpower having the knowledge and skill in an area of real property valuation.

Program Objectives

General Objective

The establishment of the program has been made with the objective of producing adequately trained manpower in real property valuation professionals to lie down the ground for the introduction of a sustainable Modernized Property management System in Ethiopia. 

Specific Objectives of the Program

More specifically, the study program upon its implementation will ensure the required quality and quantity of skilled man power for the efficient and effective design and running of well-functioning property valuation and taxation system for its proper and development oriented utilization.  The educational objectives of the program are: 

● To get real property valuers who are capable to apply their skills in understanding the problem of the society, and make a         useful contribution to the solution; 

●To produce a trained manpower that can apply its knowledge, skills and experiences acquired in   real property valuation and related  issues in the country;

●To organize short and long term trainings, workshops, seminars on real property valuation, value capture (property taxation, lease, and transfer), investment financing, property market etc. 

●Equip students with confidence, understanding and skills that they need to take up their responsibilities as community service providers; 

●To provide continuous, relevant and positive contributions to the improvement of Real property valuation for property taxation , compensation, mortgage valuation, property transfer, insurance etc  in Ethiopia; 

●To understand and exploit contemporary technologies in real property valuation for the benefits of the society; 

●To put in place strategies to support real property valuation  system needs of the country 

●To have the relevant knowledge on planning, setting research project, analyzing results, and use them in their work;