FIG Commission 9 - Valuation and the Management of Real Estate

Term 2007-2010

Highlights Commission Chair2007-2010

In 2010 Commission 9’s activities concentrated on the FIG Congress in Sydney. Commission 9 had its annual meeting and the active Working Groups held their planning sessions. In addition, several presentations on the commission topics were presented in eight technical sessions. Participation in technical sessions and sessions was very active.

Prof. Kauko Viitanen,

 WG 9.1 Compulsory Purchase and Compensations in Land Acquisition and Takings continued its work with the recommendations on Compulsory Purchase and Compensations. The recommendations were published as the FIG Publication No. 54 “Compulsory Purchase and Compensation – Recommendations for Good Practice”.

In addition, the guidelines for land acquisition in developing countries based on presentations in Hanoi Conference 2009 was launched in Sydney as a FIG Publication No. 51 “Hanoi Declaration: Land Acquisition in Emerging Economies”.

Work Plan

Terms of reference

  • Valuation - the estimating of value of real estate by valuers and appraisers for various purposes, including e.g. market value, property taxation, eminent domain, claims of damage or impact on value by some cause or event and acquisitions for public use or public policy;
  • Investment in Real Estate and Investment Planning;
  • Real Estate Investment Vehicles;
  • Real Estate Finance, Development Finance, Land Use Feasibility Planning
  • Real Estate Economics, Real Estate Markets and Market Analyses
  • Management of Property, as single asset or by management companies
  • Management of Property Systems to ensure efficient use of public and private resources
  • Management of Public Sector Property.

Mission statement

  • The real estate markets have been expanding and globalizing rapidly and the development is continuing. This means that there is a strongly growing need for uniform practices in real estate economics. International actors need reports, analyses and services made in consistent bases but also in innovative ways, which give added value to the clients in the expanding real estate markets. Standards, information and guidance for best practices together with harmonisation are asked in addition to people with good knowledge and know-how of different systems around the world. Surveyors are strongly involved in the international and local real estate markets thanks to the education of surveyors that gives a very good basis in real estate in many countries. In addition surveyors are taking care of basic registers and operations in real estate although mainly from the point of view of the public sector. FIG Commission 9 takes care that the knowledge of surveyors will cover the whole field of real estate economics contributing in that way positively to the national and global economy and to the living conditions and quality of living of human people on the whole globe.

Work Plan

Key Documents




Working Groups

Working Group 9.1 - Compulsory Purchase and Compensations in Land Acquisition and Takings

Policy Issues

  • The ownership on real property is protected by constitution in most countries. Because of the nature of the real property the right of ownership can, however, not be unlimited but for the society it has been reserved a right to interfere in it when it is necessary. For example, if the society needs a land area of a real property for a street, the owner has to convey land for that purpose, if not voluntary then by compulsion. For this interference there are normally strict preconditions in order to protect the functions of the free market. The most critical point concerning expropriation may be the question of compensation. Will the compensation statutes, valuation methods and manners really lead to full and just compensation? The rules for compensation depend on the legislation of each country. The main idea in most countries seems to be that the landowner?s financial situation shall remain the same despite the expropriation. No one should be poorer because of expropriation but also not richer. Only economic values will be compensated but non-economic not. There are no strict rules that the owner has to be able to purchase a similar property for the same price as compensated although the basic idea of compensation strives to this, and normally this can even be expected. But if that cannot be done would it lead in some cases to an unjust situation where the landowner might even loose his/her living possibilities? It seems that there are also many countries where the rules or practices in compulsory purchase and compensations are still weak and the know-how narrow. Support to knowledge in land acquisition, compulsory purchase and compensation is needed. New perspectives and a broader discussion could add to drivers for further development. This subject is not covered by valuation standards so there is need for guidance from FIG. It can contribute in developing and providing the capacity needed.


Prof. Kauko Viitanen
E-mail kauko.viitanen[at]


Prof. Thomas Kalbro (Sweden), e-mail kalbro[at]
Mr. Henning Elmstrom (Denmark), e-mail: elmstroem[at]
FAO (SDAA) Mr. Paul Munro-Faure, email: Paul.MunroFaure[at]

Working Group 9.2 - Improving Slum Conditions through Innovative Financing

Policy Issues

  • Slum is a major challenge for our joint development. Cities are the engines for development and viable cities for the rich must also be cities for the poor. Sustainable cities are a prerequisite for development on the whole - not only for poor countries or poor people. Problems that follow a rapid urbanisation make cities increasingly subject to dramatic crisis, - problems like unemployment, deterioration of existing infrastructure, environmental degradation and inadequate shelter. One out of six world inhabitants live in slums. Without concerted action by governments and their partners, today?s almost 1 billion slum dwellers will be 2 billions by 2030
  • Support to slum upgrading has focused on improved access to land, construction economics and providing basic services. Structural issues of financing and market conditions have often been overlooked. A change is urgent! Providing efficient financing facilities for slum upgrading and basic infrastructure on a massive scale will be required to meet the Millennium Development Goals.
  • The first UN-Habitat global assessment in housing finance conditions and trends of the world shows that a quite limited group of experts is involved today. New perspectives and a broader discussion could add to drivers for further development. The scope and actors need broadening from ?just? a donor-poor peoples concern.
  • Economic development depends on efficacy of financial systems. A window of opportunity exists in creating a sound and sustainable market for low-income housing. FIG can contribute in developing and providing the capacity needed.


Mr. Bengt Kjellson
E-mail: bengt.kjellson[at]


Ms. Ann Jennervik
E-mail: annjennervik[at]

Working Group 9.3 - Diagnostic Tools and Prescriptive Practices for The Valuation Profession

Policy Issues

  • The valuation profession in many countries is still rather weak and the profession has not always benefited from good education in valuation technology and theory. Consistent and logical guidelines are poor or even missing in some markets. There are no current tool sets to determine prescriptive practices for these poorly functioning valuation systems. What is needed is a systemized way to evaluate the status of a country's valuation profession and then recommendations to bring the profession up to international standards, relative to their individual needs. This is particularly important in developing economies.


Mr. Steven Nystrom
E-mail nystrom[at]

Working Group 9.4 - Review of Valuation Methods and Standards Worldwide

Policy Issues

  • Changes in valuation methods and standards, globalisation.


Mr. David Smejkal
Czech Republic
E-mail: David.Smejkal[at]

Working Group 9.5 - GIS-analyses in Real Estate Market Analyses and Valuation

Policy Issues

  • The world is digitalising very fast. Also in valuation and real estate analyses the digital methods are gaining a footing. Spatial data is nowadays mainly digitalised, and automated valuation models (AVM) are used especially in mass appraisals. The valuers and real estate analysts have to adopt the use of digital tools and methods to be able to serve their client even in the future. Otherwise there is a threat to become a bystander or an assistant when other expert groups expand their scope. The idea for the WG is especially to get discussions about the new developing digital methods in valuation and real estate market analyses in FIG. Participants will get information of new ways to do analyses, get new ideas and test old ones. In addition people will participate much eager when they feel they really can learn something new in the FIG working weeks and conferences.


Mr. Dieter Kertscher
E-mail: dieter.kertscher[at]


Mr. Steven Nystrom (USA), E-mail: nystrom[at]