Property Valuation Theory: Implications for Policy and Practice in Zimbabwe
DOI:
https://doi.org/10.48346/IMIST.PRSM/ajlp-gs.v6i4.40358Keywords:
Property valuation, Value, Economic value theory, Property valuation approachesAbstract
Context and background
There is a reciprocal relationship between theory, policy and practice. Property valuation as practiced today is elucidated by certain standards and policies which are based on theoretical foundations. The axioms of value have been postulated throughout history, from pre-classical times to the present, with succeeding theorists, some adopting the former’s reason with adjustments and some refuting. The necessity for exploring the historical development of the value theory is because, “theories are the building blocks of scientific knowledge” and it makes the explanation of reality possible (Mooya, 2016). The current processes and practice of property valuation can be traced to the economic value theory reasoning (Appraisal Institute, 2022). Changing times entail evolving and new demands on professions to answer emerging challenges. The valuation profession is no exception hence the need for continued research and postulations of the property valuation theory, and amendment of policies to the improved practice.
Goal and Objectives:
This article seeks to map the property valuation policy and practice in Zimbabwe, show the possibility of accord between the property valuation theory, policy and practice, and identify areas that need improvement in the valuation practice in Zimbabwe. The article also contributes to the ongoing discussions on property valuation theory and practice.
Methodology:
The article was based on a literature review approach. Extant literature in the form of books and journal papers was explored to discover the implication of the property valuation theory to practice and its evolution. Legal and policy documents were also consulted in search of the existence of property valuation theory in legal prescriptions.
Results:
The article found that value is a product of its time and place, which should be understood contextually. It also established that, though property value is illustrated as a numerical figure, there are processes for value determination that emanated from the economic value theory reasoning to the effect that, the present value understanding is a contextualized deduction of the past reasoning. Further, the article argues that the value theory is evolving slowly at the expense of the valuation profession in the face of contemporary challenges such as economic crises, pandemics and compensations after expropriation. Additionally, the standard economic value theory seems to be found wanting in answering the property valuation questions within some contexts such as the expropriation of communal and customary lands. Also, the Zimbabwean practice, as much as it embraces the Western-based property valuation theory, the policy is obscure and sketchy indicating an incoherent relationship between theory, policy and practice.
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