Rating in general
In this paper the words valuation/evaluation are used interchangeably.
There is no difference between the two that the real estate sector in all its forms and its various economic activities constitute an important pillar of the activities of the modern state today. In a broader sense, we see real estate in every aspect of our lives: we find it in our mosques, schools, homes, universities, factories, airports...etc.
In order to understand the characteristics of real estate investment, and deal with it with investment intelligence - as is always required in the world of investment - we shed light on the relationship of real estate investment with evaluation in the real estate market usually, understanding this relationship gives the investor a sound perception of what he should do, and then the investor will find himself avoiding a lot of Wrong decisions that individuals follow and some of them fall after, or they make a weak investment that is liable to fall at the slightest storm.
The real estate appraisal activity is the heart of real estate activities. A practical understanding of real estate appraisal - the theoretical concepts of value and the factors that affect it – will enable the broker and investor to serve their clients more beneficially and more confidently. The most frequent question from customers is “What is the value of the property?” Remember that 'value' is subjective, meaning that one person may think something is worth more than another. Because of this, the expression 'fair market price' was established. A fair market price is the price that a willing buyer will pay and a seller will accept.
Valuation science is not an empirical science in the sense that it is not like the natural sciences or mathematics, because it is difficult to prove the principles of valuing different types of assets by experience or objectively. And applying the logical method to reach an opinion on the value of the property, the more educated and trained the appraiser is, the better professionally he is.
The visible part of the appraisal is the collection and verification of data and the preparation of the appraisal report. This requires a normal skill that does not have any challenge and does not require any imagination, but real estate appraisal now has become a science with specific standards, concepts and rules unknown to many appraisers themselves. Real estate valuation has become a theory, philosophical goals and standards (minimum of the requirements that must be met in the valuation) as well as the specific concepts and definitions. All of this is considered a conceptual framework for the valuation theory.
Thus, real estate investment can be employed by taking advantage of the powerful set of methodologies and tools emanating from the science of "real estate valuation" in order to contribute to solving many difficult and complex business problems with the aim of:
Gaining a deep understanding of what expert speakers of modern methods of real estate appraisal offer to investors,
Explanation of the contemporary assessment of the residential, administrative and commercial real estate markets in the markets,
Applying the information and knowledge gained to new and changing situations,
Accordingly, this is the first scientific conference that is based on the topic of "real estate investment and valuation" with the aim of bringing together experts, scholars, students and managers interested in real estate fields to exchange and share their experiences and results of their studies while highlighting the importance of developing these methodologies to help real estate establishments and investors in facing today's challenges.
Participation in opinions, information, analyzes and opportunities associated with accelerating the development of appraisal applications in the service of real estate investment, that is, it acts as a platform from which the modernization of the Arab investment environment can be supported to face modern societal changes and severe competition in the phenomenon of modern globalization.
The first axis: the combined evaluation and its role in rationalizing real estate investment.
The second axis: international evaluation standards and a comparison between them and an action plan for the establishment of the Arab Evaluation Standards Institution.
The third axis: the evaluation of heritage properties.
The fourth axis: the role of evaluation in encouraging local and foreign investment and real estate financing.
The second paper
It is more specialized
The valuation profession, like any profession, has developed through the exchange of experiences and knowledge between valuation experts at the global level, and as it has been said, it is harmful and beneficial. America and East Asian countries in the late eighties and also the recent financial crisis.
Like the spread of epidemics, the need to pay attention to medical practices and issues related to public health also emerged, with the presence of some economic turmoil and financial crises, the need to standardize measurements for evaluation of financial statements, loans and money markets, and the work of unified standards for evaluation and finding the best mechanisms to implement those standards to standardize the use of the evaluation process in serving customers and the public Where the standards aim to build confidence among local and external customers.
Standards are the common sense of any civilized evaluation market that depends on the consistency of these standards with the practice of the profession and this helps to avoid conflicts and differences. These standards must be consistent with the methodologies of international standards to avoid any unnecessary gaps. Therefore, the Egyptian standards for practicing the evaluation profession will be compatible with international standards for evaluation, and it is also possible to take from the local standards of some countries that preceded us in this field.
The market turmoil of 2007 and 2008 (the global financial crisis) is par excellence a real estate market crisis or what was called toxic (unhealthy) assets. Reforms in financial reports, and it has become necessary for international and local evaluation standards to review evaluation thinking and develop evaluation concepts.