FIG Commission 9
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Work Plan 2015-2018
Original work plan in pdf-format
Terms of Reference
- 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 planning;
-
Real estate economics, markets and market
analysis;
-
Real estate economics, markets and market
analysis;
-
Management of all kinds of real estate at all
levels;
-
Asset management for corporate private and
public sectors;
-
Management of the use of buildings to ensure
optimum benefits to occupiers.
-
Community perceptions and understanding about the surveying
profession;
-
Participation in FIG Standards Network.
Mission Statement
The mission of Commission 9 is to:
- To advance the professional practice of valuers and property
managers working in all areas of real estate valuation and management;
- To research and publish “best practice” for the benefit of valuers
and property managers in different jurisdictions and sectors of the
industry. This will benefit of the surveying community and improve our
services to the wider public;
- To facilitate and generate the exchange of information, knowledge
and experience between surveyors for the benefit of the profession, our
clients and the wider public;
- § To 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 global sustainability agenda and the Millennium Development Goals;
- To co-operate and work with fellow surveyors in all specializations
of the profession to further the broader objectives of FIG.
General
This work plan focuses on three highly relevant themes, Property
Taxation, Real Estate Market Policy Frameworks, and Valuation Methods and
Standards.
Following on the successful previous four years of study, Commission 9’s
Working Group 9.2 focuses on the efficient use of mass appraisal valuations.
This continues to addresses international and pressing need in the use of
property taxes for the benefit of local communities and demonstrates an
important opportunity for FIG to continue to use the international
experiences of its members to contribute to and inform the global debate on
property taxation.
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.
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.
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.
Working groups
Working Group 9.1 - Expanded Policy Framework for Sustainable Real
Estate Markets
Policy 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
E-mail: nystrom[at]newstreamcompanies.com
Co-chair
To be announed
Workshop(s)/Seminars
To be announced
Publication(s)
An FIG Companion Book to enhance the understanding of
the broader issues surrounding the 10 Principles as discussed in the
2010 United Nations Policy Framework for Sustainable Real Estate Markets
booklet.
Timetable
- 2015 Outline Discussion topics
- 2016 Roundtable discussions regarding Principles 1 to 5
1. Integrated Legal Framework
2. Efficient Land Register and Cadastre
3. Efficiency of Services
4. Prerequisites for Development of Sound Real Estate
Markets
5. Good Governance
- 2017 Roundtable discussions regarding Principles 6 to 10
6. Sustainable Financing
7. Transparency and Advanced Financial Products
8. Property Valuation
9. Social Housing
10. Training and Capacity-Building
- 2018 Presentation of the Companion Book to the FIG and submission to
the UN for further comment and study
Beneficiaries
- Beneficiaries of this research will be central and local governments
in established and emerging economies, the public at large, real estate
investors, nongovernmental organizations, financial institutions and
development banks. All FIG member organisations, UN and other
professional international and national organisations, and agencies will
also benefit.
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.
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Chair
Manohar Velpuri, e-mail:
manohar.velpuri[at]gmail.com
Material:
Specific Projects
- Does Fin-tech advance the professional practice of valuers and
property managers working in most areas of real estate valuation and
management;
- Research and publish “best practice use cases of Blockchain” for the
benefit of surveyors in different jurisdictions and sectors of the
industry. This will benefit the surveying community and improve our
services to the wider public;
- Does Fin-tech’s third and fourth wave facilitate and generate the
exchange of information, knowledge and experience between surveyors for
the benefit of the profession, our clients and the wider public in
relation to the World Bank’s fourth generation technologies on land
engagements;
- Block-chain’s role in publicizing and promoting the work of
surveyors to the public, particularly to young people, governments and
non-government organizations. Additionally, to enhance the value and
perception of surveyors and the services they can deliver, especially in
support of the global sustainability agenda and the UN Millennium
Development Goals;
- Does Fintech 3.0 and 4.0 lead to better alternative financing
and sustainable real estate markets while also enabling better policy
framework through reforms.
We will cooperate with Commission 7 as well as the Task force on Real
Estate Market Study, as well as other Commissions as appropriate. The WG
will also work in close co-operation with UN-Habitat and the World Bank. The
results will be presented in a joint seminar with UN-Habitat and the World
Bank, perhaps in connection to the World Bank conference in Washington DC
2017-2018.
Sessions
A seminar to tap the potential for relevant exchange of experience
between countries and regions is being planned for the FIG working week in
Helsinki May 2017 and other events of Commission 9. Real-life experience
will be added to by future oriented crosscheck surveys and thematic
analysis. Interaction between different groups of actors will be fostered
both during the preparations and by the design of the seminar itself. The
results will be presented at the World Bank conference in Washington DC
2018. In addition the subject will be discussed in each annual FIG
Commission 9 meeting and working Week.
Publications
- Technical papers presented in annual meetings.
- Report on best practices results of using Blockchain in different
countries.
Timetable
- 2016-2018: research papers for Technical Sessions.
- 2018: Final Report at FIG Congress.
Beneficiaries
All FIG member organizations, UN, other professional international and
national organizations, agencies and governments.
Policy issues
- Property taxation recognises the social and economic value of real
estate and provides revenue which (normally) funds public services, for
the benefits of the wider community. Valuers contribute to an
efficient, effective and socially acceptable property tax in their role
as assessors of the tax base. Technical valuation skills support
appropriate methodologies, in particular, the use of Computer Assisted
Mass Appraisal (CAMA) techniques, as well as ensuring improved access
for the public to relevant information, advice and data.
However, the use of mass appraisals involves a degree of technical
skill and knowledge which is beyond the understanding of the average
taxpayer and which may involve a trade-off between efficiency and
‘justice’. This therefore imposes an additional responsibility on the
valuation profession to ensure that the highest degrees of equity and
‘fairness’ are achieved within the limitations of the technology, and
that acceptable levels of explanation and reassurance are available to
all parties, particularly taxpayers.
This working group will investigate and publish appropriate
guidelines for the development of mass appraisal techniques to support
property tax assessments, including the appropriateness original data
sources (property characteristics, sales, rents, yields, costs asking
prices, or valuations) and of indices to monitor the property market,
which will be particularly useful during the current economic climate.
Case studies will be explored showing where and when implementation
was and was not successful so that key elements for a successful system
can be identified.
Chair
Varnavas Pashoulis, Cyprus
E-mail: var[at]cytanet.com.cy
Co-Chair
To be announced
Workshops/Seminars
To be announced
Publications
Timetable
To be announced
Beneficiaries
Increasingly, property tax systems around the world are developing,
implementing, and refining mass appraisal techniques to support tax
assessments with the overall scope to generate public income to provide
public services for the benefit of the community. By doing this, there is a
multi benefit effect, due to the fact that these assessments can also be
used as the basis to support single property valuations by private or public
bodies for advisory purposes, for Capital Gains Tax Assessments, for
Transfer Fee assessment, for compulsory purchase purposes, as well as to
publish property indices in order for the property market to be more
transparent and efficient. . Thus, the outcome of this working group will
support such initiatives as well as providing local
authorities/municipalities, valuation standards organisations and those
international organisations with an interest in securing equitable,
effective and efficient public services for increasingly sustainable
communities. While focusing on the needs of property taxation, this
investigation into mass appraisal techniques will also benefit mortgage
lenders who use such techniques in their assessment of loans and in
monitoring the fluctuations of the property values and where appropriate to
take precautionary measures either at booming or recessionary times. Also
benefiting will be FIG member organisations, UN and other professional
international and national organisations, agencies and governments and local
authorities.
Working Group 9.3 - Valuation Methods and Standards Worldwide
Policy issues
- Valuers contribute to an efficient, effective, transparent and
healthy national economy in their risk analysis role in the real estate
industry. Various countries and organizations educate their valuers
differently, and regulations for analysis vary across national and
financial boundaries. Differing scale of properties as well as differing
property types such as retail, office, hospitality, multi-family,
industrial, vacant and residential require very different analysis
techniques. As such, there are a very wide range of techniques and
expected norms around the world for the analysis of any specific
property type.
- There is an abundance of valuation report
templates and techniques for the analysis of differing property types.
Some are more accurate or efficient than others. However, few valuation
professionals have access to more than a handful of these templates,
limiting their ability to creatively address a specific appraisal
problem. This limits the ability of the industry to improve and weakens
the reliability of appraisal results used to make financial decisions.
As such, the national economy and the real estate industry are weaker
for the lack of broad template and technique sharing.
- These roundtable discussions will bring together real estate
professionals (valuers, managers, brokers, state and private ownership
organizations) to share templates and techniques used to value and
analyse specific property types.
Specific projects
- Identify the commonly used standards in different markets and study
the valuation methodologies adopted. Gather local actors to share and
discuss templates and techniques.
- Present and discuss the findings at FIG Working Weeks and Congress
with information posted on the web-site for member and public reference.
Chair
David Smejkal, Czech Republic,
E-mail: david.smejkal[at]a-consultplus.cz
Co-chair
To be announced
Workshops/Seminars
- To be planned for each annual meeting.
Publication
- Technical papers presented in annual meetings.
- Report on results of work group investigations and reports at
Congress 2018.
Timetable
- 2015–17: research papers for Technical Sessions.
- 2018: Final Report at FIG Congress.
Beneficiaries
- All FIG member organizations, UN, other professional international
and national organizations, agencies and governments.
Added July 2017
FIG Joint Working Group Commissions 9 and 7 – Development of a Valuation
Component for the ISO 19152:2012 Land Administration Domain Model
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
Workshops/Seminars:
- 2017. A special session or meeting in FIG Working Week 2017,
Helsinki.
- 2018. A workshop in FIG General Congress 2018, Istanbul.
Timetable:
- 2017 Activities
- Providing input to the preparatory ISO 19152 Meeting on
the Second Edition of the Land Administration Domain Model (ISO
TC211, FIG, OGC UN-GLTN), 16-17 march 2017, Delft, The Netherlands.
- Presenting and discussing the first version of Valuation
Extension Module in FIG WW 2017, Helsinki with a group of invited
experts from FIG Comm. 7, Comm. 9, and FIG Standards Network, ISO TC
211, OGC Land Administration DWG, IVSC, TEGoVA, IAAO and other
relevant bodies; and finalizing research plan, objectives and
further activities.
- Evaluating and reporting results of ‘Questionnaire for the
development of ISO 19152:2012 LADM Valuation Module’, publish all
completed questionnaires on http://isoladm.org/.
- Reviewing the standardisation of valuation in ISO 19152 by ISO
TC 211.
- Developing the second version of Valuation Extension Module,
based on outcomes derived from previous activities.
- 2018 Activities
- Organizing a Workshop in FIG General Congress 2018,
Istanbul to present and discuss on outputs of WG.
- Develop one or more country profiles of the LADM 2.0 valuation
package.
- Implement prototype system (database), populate this with real
cadastral and valuation data (including time-series).
- Demonstrating outcomes of WG research activities through
scientific papers.
Beneficiaries:
Beneficiaries of this research will be national valuation and taxation
administrations at central and local levels; international organizations
working on property valuation, taxation and land administration in broader
context, such as International Association of Assessing Officers (IAAO),
International Property Tax Institute, United Nations (UN) Global Land Tool
Network
Co-operation with Other Commissions and organisations
Commission 9 will support and contribute to FIG task forces, and, in
particular, to the Property Markets Task Force, the Young Surveyors Network,
the United Nations organizations, UNECE, WPLA, REAG, FAO, UNHABITAT, GLTN,
and the World Bank. It is envisaged that such international organisations
will be particularly interested in the work of the Working Group 9.1 and
9.2. The possibility of joint events will be investigated.
Co-operation with United Nation Organisations, Sister Associations and
other Partners
Commission 9 is co-operating with FAO, UNECE, GLTN and UN-HABITAT on
Commission 9 related issues.
Commission 9 will investigate co-operation opportunities with a range of
relevant international organisation, including the Internal Property
Taxation Institute (IPTI), International Association of Assessing Officers
(IAAO) and the Lincoln Institute of Land Policy.
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