FIG Commission 9 - Valuation and the Management of Real Estate |
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Term 2015-2018
Working Group 9.1 will expand the debate surrounding the United Nations published the Policy Framework for Sustainable Real Estate Markets booklet. The aim of Working Group 9.1 is to discuss, analyse and expand upon the 10 principles within this text, to allow for greater understanding and applicability in their implementation. This should benefit all interested actors, government organizations, and non-government organizations. Working Group 9.2 along with Commission 7 will address block chain financial technology as it relates to risk management, valuation, and access to credit within this rapidly evolving sector. Financial technology is evolving at a rapid pace with land and credit markets to be affected greatly. A greater understanding of block chain financial technology will aid government and non-government actors, as well as the financial and insurance sectors. Efficiency and security gains could be immense and affect how land administration functions, allow greater access to credit for vulnerable groups, and change how risk in the future is weighted, perceived, and analysed. Round Table Discussions 9.3 will identify the commonly used standards in different markets and study the valuation methodologies adopted. Local actors will share and discuss templates and techniques used so that the industry can broaden its base of knowledge, enhancing the ability of practitioners to support their local economies and professional organizations. Working Group 9.4 explores adding a valuation component to extend the scope of LADM from a fiscal perspective to provide an information model that could be used to construct information systems for mass property valuation. This has the benefit of a more broad based and coherent LADM model handling a very wide range of functions and increasing efficiency of the land markets through consolidation of administrative real estate functions . All of the Working Groups and Round Tables have the goal of expanding the knowledge bases and skill sets of our professional organizations, their individual members, national governments, non-government and international aid organizations, and by extension the global economy. Commission 9 - Solving the Channlenges of Tomorrow today
Terms of Reference
Mission StatementThe mission of Commission 9 is to:
Working Group 9.1 - Expanded Policy Framework for Sustainable Real Estate MarketsPolicy issues In 2010, the United Nations published the Policy Framework for Sustainable Real Estate Markets booklet. This document provides a short discussion of 10 Principles and related guidance for the development of a country’s real estate sector. The aim of Working Group 9.1 is to discuss, analyse and expand upon these 10 principles, to allow for greater understanding and applicability in their implementation. In effect, this Working Group will broaden the discussion surrounding the individual 10 principles to include more specific details, as well as outline possible economic and social impacts. This should benefit all interested actors, government organizations, and non-government organizations as it relates to regulating, improving or developing a sustainable national real estate market. An efficient, transparent, inclusive, just and economically integrated private real estate market is typically the second largest value sector in a nation (after human capital). If it is well functioning, the real estate sector is a core economic engine enhancing the efficient use of other capital and the labour markets. If it is poorly functioning, this creates drag on the growth of an economy and weakens the ability of the labour markets to produce to full potential. The recent global economic crisis has shown that weak financial and real estate regulatory frameworks surrounding the real estate markets exacerbated the problems and contributed to a longer and more costly recovery process. This expanded analysis of the Policy Framework for Sustainable Real Estate Markets is intended to provide more detailed guidance, promoting sound real estate markets both inside and outside the UNECE region. A more detailed discussion of the 10 Principles and their role in an efficient, transparent, inclusive, just and economically integrated private real estate market can help the primary actors to more appropriately regulate their real property. This can accelerate the economic recovery, promote long-term sustainable development, create enhanced productivity of labour and other capital, lower risk levels, and enhance international stability. Chair: Steven Nystrom, USA Working Group 9.2 – Valuation and Real estate management through Fin-tech(changed November 2016) Valuation and Real estate management issues: A modern and sustainable surveying profession in support of society, environment and economy requires innovative, reliable and best practice solutions to our rapidly changing and complex world. One such technology is the blockchain. It brings three essential elements: First, it will secure the data such that it is incorruptible. Then, it will give the possibility of a public audit in almost real time. The auditor may audit every 10 minutes, unlike a typical yearly audit. Finally, it will reduce the friction in the recording and cost of registration of property rights, as citizens can use the service on their smartphone. The blockchain can thus be used as a notary service. A key element of the registration of property sales and real estate management is the use of third party services to assess the sale process. The use of this futuristic ideology of creating these essential elements through block chain is one of the tenets that can lead to more efficient real estate markets. This working group focuses on fourth generation technologies used by the World Bank’s approach to land engagement. Blockchain technology has been hailed by custodians as being the future of the real estate management industry with potential to streamline processes such as land and property registration, valuation of property and many more digital actions. This could increase efficiency throughout the operation of land markets, impacting both both public and private purposes. This Working Group has aimed to ‘define’ the technology in its applications in the real estate management and valuation arena. The group also plans to draft a list of open items, questions and concerns regarding the adoption of blockchain technology that will act as a reference guide. The working group also aims to organise sessions with financial institutions to illustrate the impact of blockchain on trade processes in order to capture the views of institutions rather than ‘convince’ them of blockchain implementations. As a result of these consultations, the working group also plans to launch a central repository of information on the technology towards investment planning and real estate investment vehicles through better and more efficient valuation tools in developing countries and informal markets. Chair Manohar Velpuri, e-mail: manohar.velpuri[at]gmail.com
Working Group 9.3 - Valuation Methods and Standards WorldwidePolicy issues
Chair FIG Joint Working Group Commissions 9 and 7 – Development of a Valuation Component for the ISO 19152:2012 Land Administration Domain Model(Added July 2017) Valuation and taxation of land and immovable property is related to the many processes of land management for achieving towards Sustainable Development Goals (Plimmer and McCluskey, 2016). The political aspects of these processes are critical, but this research addresses the information contents/ systems aspect. As indicated by Voluntary Guidelines on the Responsible Governance of Tenure, appropriate [information] systems are needed for fair and timely valuation of tenure rights for land and property taxation, and other public and private sector activities (e.g. expropriation, real estate financing, investment analysis) (FAO, 2012, 18.1). Habitat III New Urban Agenda promotes supporting of ‘local governments and relevant stakeholders, through a variety of mechanisms, in developing and using basic land inventory information, such as cadastres, valuation and risk maps, and land and housing price records, to generate the high-quality, timely and reliable data needed to assess changes in land values’. (UN, 2016, 104). This research focuses on development of an international data standard for the aforementioned valuation inventories or databases. There are several international standards related to the procedural and measurements aspects of immovable property valuation issued by organizations such as International Valuation Standards Council (IVSC), The European Group of Valuers’ Associations (TEGoVA), and International Association of Assessing Officers (IAAO). In addition to these standards, the geospatial community has facilitated the development of a number of domain specific data standards that specify the 2D and 3D geographical aspects of property units, such as ISO 19152:2012 Land Administration Domain Model (LADM), OGC CityGML, IndoorGML and LandInfra/InfraGML. Despite the existence of the above-mentioned standards, there is no internationally accepted standard that defines the data content or semantics of valuation databases, such as the entities, attributes/properties, relationships, and constraints of the information model. The ISO LADM presents a conceptual
schema for the specification of property units and their legal and geometric
characteristics recorded at cadastre and land register, and relates these
datasets with other property related datasets (e.g. addresses, utility
networks, building (units), valuation, taxation, land use, land cover)
recorded at external registrations. It defines semantics of land
administration systems mainly focusing on legal requirements, but also
provides a formalism, which allows for an extension that responds to
fiscal requirements. The aim of this Joint Working Group is to define the semantics of valuation information maintained by public authorities especially for recurrent taxes on immovable property, and to extend the scope of LADM from a fiscal perspective to provide an information model that could be used to construct information systems for property valuation. The expected outcome is to provide a common basis for governments to direct the development of local and national databases, and for the private sector to develop information technology products. The LADM Valuation Module is foreseen as input to ISO TC211 for the revision of ISO 19152:2012, which starts in 2017 and should result in LADM 2.0. Chair: Volkan Çağdaş Co-Chair(s): Peter van Oosterom, Christiaan Lemmen, Erik Stubkjær |