International Conference on Investment and Real Estate Appraisal (The future of the real estate market and development requirements)

International Conference on Investment and Real Estate Appraisal
(The future of the real estate market and development requirements)

June 10 - 11, 2010 Cairo - Arab Republic of Egypt

This study is an experiment and an invitation to specialists in archeology and evaluation to read it, and record what they can observe on it, and please send their comments.

Economic assessment of heritage properties
(Civilizational, architectural and other heritage of all kinds and forms is considered a source of pride for nations and a proof of their nobility and originality, that is, it is an expression of national identity and a link between the past and the present.)

Hisham Muhammad Muhammad al-Mahdi
Introduction / Real Estate Appraisal Expert No. (29)

Research Summary:
The main objective of this methodology is to standardize the basic concepts used in cultural heritage assessment, assessment procedures and methods of calculation, and to define uniform requirements for presenting assessment results.

   The method requires the use of all the actors that affect the parameters of the cultural heritage, taking into consideration the archaeological volume of the historical buildings in Cairo and other governorates.

  Compliance with the provisions of the methodologies and how the appraisers comply with the relevant factors that affect the impact assessment and which are determined by the Ministry of Culture and other stakeholders, and this is a prelude to the cooperation of the Ministry of Culture with the Egyptian Association of Real Estate Valuation Experts.

p Contents
1- Summary of the research
2- Field of application
3- Basic concepts and definitions
4- Classification of cultural heritage
5- Cost forms and estimated costs of cultural heritage
6- Methods of evaluating cultural heritage
6-1 cost method
6-1-1 Estimating the value of the land
6.1.2 Estimating the cost of reproduction
6-1-3 Depreciation cost of cultural heritage
6.1.4 Estimation of intangible factors of impact
6.1.5 Estimating the total cost of the impact by the cost method
6-1-6 Estimation of the archaeological heritage
6-2 How to compare sales
6-3 capitalization method
7- Reconcile the results
8- Evaluation work
8-1 Appraisal Assignment Letter
8-2 Determining the subject of the evaluation and the factors related to it
8.3 The technology implemented by the state to preserve the cultural heritage
8-4 Studying the historical and heritage value of the subject of evaluation
8-5 Estimation of value
9- Contents and structure of the evaluation report
10- Qualifications required for evaluation experts
11- Conclusion

2 . field of application
   The purpose of this methodology is to develop general guidelines for valuing heritage properties in light of international and Russian valuation standards.

  This criterion is used to estimate the cost of archaeological properties with a historical and cultural advantage (see definition of antiquity) and is used by appraisers in the estimation process in interaction with customers. Owners and real estate market agents depend on it in estimating the type of transactions for the antiquity.

 These guidelines are applied by appraisers and can also be used by legal persons who are involved in impact costing work.

 These guidelines apply to the assessment of the impact itself and its equity, which can be assessed as separate parts and as part of an existing project.

Note (1): These guidelines are not taken as a comparison to determine the value of the land for non-heritage properties, as well as with regard to heritage movables, they do not apply to them either.
 Note (2): These guidelines are not to be taken into account in the evaluation of religiously sacred real estate.
3- Basic concepts and definitions
In these guidelines we use the definitions provided by the International Standards of Evaluation and the Russian Standards, as well as the supplementary definitions.

  Heritage Building: Architectural facilities and vocabulary with architectural, historical or cultural characteristics (Table No. 1) that narrate specific events related to the arts, sciences, literature, morals, beliefs or daily life dating back a hundred years or more and whenever they have an artistic or historical value .
It was agreed that heritage buildings and facilities or of a distinguished architectural style should be characterized by the following:
 Community acceptance: To gain acceptance and positive interaction from the community to allow it to continue. -
- A cultural and social phenomenon: to be expressive of physical, moral or intellectual phenomena in a specific time period.
Resilience and continuity: that is, its condition allows the continuity of its existence and the possibility of dealing with it.


Urban site: the urban fabric, public squares, residential neighborhoods, and the coordination of sites that represent the fixed values ​​on which the culture of the population is built.

Heritage Site: Buildings, sites, urban facilities, and collections of heritage value in terms of building style, archeology, architecture, city planning, art, science, technology, aesthetics, ethnology, social anthropology, culture, and which have a sign of covenants and civilizations, or of a national, national, or religious character, or associated with historical figures. Or specific events as well as other things that constitute material values, intellectual values, artistic or unique reference from the point of view of history, archaeology, culture, architecture, science and the arts.
In accordance with Law No. 119 of 2008 - Chapter on Civilization Coordination and its Executive Regulations, these areas are distinguished
One or more of the elements specified in the criteria for determining the heritage areas referred to in the list.

Buildings and facilities of a distinguished architectural style according to Law No. 144 of 2006:
1- They are the buildings, assembled or individual facilities, or gardens that are distinguished by their technical value, building materials, or construction methods used (Fig. 1) and are applicable to them.
 The following standards and specifications:
A- They were created according to concepts or an architectural school
b- It reflects the characteristics of a particular historical period
C - spontaneous architecture that expresses a local environment
D - is rare and unique

2- Buildings and facilities related to national history
They are the buildings that have been associated with influential national events in the history of Egypt.

3- Buildings and facilities associated with a historical figure: -1-2
They are the buildings that are associated with an Egyptian or a non-Egyptian person