Today, Real Estate is a cliché in every country. Real Estate property is attributed as a sure-bank investment for persons who can afford this intangible form of assets, and unlike money, it is ranked higher than financial instruments. This Article is not to argue about its societal placement as a form of an asset over other forms of assets but its role through valuation in the economic growth and development especially Nigeria. There are several determinants of Economic development in the world. They include Real Estate Development, Inflation, Money Supply and Interest Rates, to mention a few. The main focus is on Real Estate as other determinants evolve around the statistical calculations of demand and supply. Demand and Supply are not really a major factor in valuing Real Estate, as there are other significant factors such as the People’s Purchasing Power, the category of the Real Estate, the Soil composition and geographical location of the Land which would also factor in natural and man-made disasters, etc. Real Estate Real Estate is synonymous to Land and everything that is permanently affixed to it. This includes buildings, structures, etc. Real Estate has various categories such as Residential, Industrial, Commercial and Development, and Agriculture. These categories are usually depicted in the Certificate of Occupancy granted to either Statutory or Customary holder of the land for a term of years. The Land Use Act of 1978 is the primary law governing Land in Nigeria. The Act vests all land in the state, that is, land in its entirety within each 36 states territory and boundary in the Governor of each state. Just like every profession has its representatives, Real Estate has its representatives and they are called Estate Surveyors and Valuers (ESV) . These set of people provide information, contribute and advise persons (individuals, corporate entities, and governments) on the knowledge and strategies to build infrastructures, maintain infrastructures, and on national development. Some roles of Real Estate Valuation includes:
- Auctioneering: arriving at the initial value which the property will be auctioned i.e. guide price
- Evaluating and valuing monetary value for property either for loan purpose, mortgage purpose, Construction purpose, assignment or transfer purpose, business startup, etc.
- Consulting on statistical compensation required for the revocation of property for public interest
- Splitting businesses based on its assets
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