Residential investment capital in the world is getting more liquid with the use of technology. The Middle East and North African (MENA) region has its allure in attracting upper-end residential investment from Casablanca to Dubai. Residential investment in Africa is also starting to pick up. This paper will use the Global Property Guide to examine different price and investment yield trends for the upper-end residential property in selected city across Africa and the Middle East. The data available is for the period between 2005 and 2010, although some countries only have data for 2009 and 2010. It is interesting to note the decline of the yield on investment compared over the past five years in most of the cities examined, although lower yields are not uniform. The MENA region and its sub-components, and African cities are compared to each other and to a baseline western market over place and time, holding productive type constant. Residential investment implications for the MENA region and Africa are set forth.

Purpose: This paper aims to contribute to a better understanding of different contract types in the construction sector by presenting a new structure and also critically evaluate some recent arguments for design-build and PPP- procurement systems are critically evaluated.

Design/methodology/approach: A review of the debate in Sweden related to the construction sector is presented as well as transaction cost theory, co nnected to incentives and rationality that is used in the theoretical analysis. The focus is on the infra structural sector.

Findings: The relation between contract and procurement types is clarified by clearly separating two decisions – who should be responsible for design and should construction and operation/maintenance be bundled. PPP is then seen as special type of bundled contract. Many of the arguments for leaving design to the contractor, and for bundling construction and operation/maintenance have a weak empirical foundation.

Originality: This paper presents a new way of structuring construction contracts and argues that there are a number of situations where design-bid-build contract could be rational even in a long-term perspective.

This paper presents an empirical investigation of market valuation prices of commercial buildings in relation with the indicators (or determinants) of value creation in Dar es Salaam, Tanzania. The commonly used measures of commercial property values are evaluated for estimation of logarithmic model for estimation of the assessed values of properties. The paper uses statistical test procedures to examine whether there are any significant differences in the valuation data as well as valuation indicators for the period 2009 - 2010. Furthermore, multivariate procedures, auto-regression, Granger non-causality tests, and generalized hedonic model are conducted to analyse relationships between the assessed property values and the physical property attributes. The hedonic price equation expresses the assessed property value as a function of physical property attributes. The model is based on a representative sample of the segment of real market with good statistical performance from Dar es Salaam, the capital city of Tanzania. With the model in place, the unknown values of properties in the absence of clearly defined markets can be derived from information acquired through surrogate markets. To this effect therefore two different research questions are investigated. The first substantive research question is how to estimate commercial property values in valuation, with the use of a hedonic model. The second research question is how the estimated values by hedonic model correlate to the actual observed values. It is found out from the model that the general external area (GEA) and value of land (VoL) play an important part in the assessment of the Property Value.

At independence (1990) Namibia like other African countries inherited a dual land tenure system and a related management system consisting of customary land tenure administered by traditional leaders and statutory land tenure administered by central government. Before the passing of Communal Land Reform Act 5 of 2002 (CLRA), Chiefs/Traditional Authorities (TA) allocated rights in accordance to customary land tenure. These allocation procedures were not documented and were considered to be unfair by some residents of communal areas, i.e. some people were allocated larger portions of land while others received smaller parcels, some people were allowed to fence, and others were not. Double allocation of land rights has been identified as a results of poor land administration. In this research a framework for evaluating communal land administration (after introduction of CLRA) in Namibia focusing on the process of land allocation, registration and recognition of existing and new land rights as described in the act vs. as practiced on the ground has been developed. The framework is based on three aspects i.e. management, operational and de jure vs. de facto aspect. It has been used to evaluate de jure as well as de facto land management in the three northern Namibian (Oshikoto, Omusati and Oshana) regions. Land allocation practice has been compared to the problems prior to the CLRA introduction. The research results show that there is a difference between the processes as defined by the act and as practised on the ground in all three regions. Human and technical resources, complexity of the processes are some of the core challenges highlighted by this study. Proposed models identify use of a headman as one of the key actors, this could reduce the complexity of the processes and it could enhance participation of land users within the communal land administration. Due to time limitation this work has focused only to three organizations such as MLR, CLB and TA in the three regions.

For many years, real estate investment and development has been hampered by lack of financing, among other bottlenecks. Consequently, the supply of real estate products has remained low compared to demand. The housing shortage, for example, has remained high with very many households occupying housing units that are below their expectations. 

In the recent past, there have been continuous and incessant attempts to invent new and innovative ways of financing real estate investment and development in Kenya. The innovative financing tools have been developed in order to alleviate the problem of access, cost and risk, while achieving high returns on investment. One of the most innovative tools has been the forward or presales contracts. Invariably, the use of this tool has necessitated the sale of individual units at a price that was lower than the current market price or at a price that was lower than the projected sale price at the end of the project. This tool has been embraced by many developers because of the benefits it supposedly brings to the developer. Some of these benefits include low financial leverage, low cost of financing, reducing the amount of personal equity, enhancing market confidence in the project, improving rating of the investment by debt and equity financiers, transferring some risks to the buyers among others. 

The study reviewed ten medium-sized residential projects executed and completed between the year 2005 and 2010 in Nairobi and Mombasa. The project selected were those that had units ranging from 50 to 100 units targeting the middle-income groups. The focus of the review was to establish the key motive for use of the pre-sales agreement mode of financing, the number of units sold under pre-sales contracts, the number of units sold under other arrangements, the overall cost of the project (including the final cost of finance), total sales proceeds and net sale proceeds. 

Results reveal that the key motivating benefit to the developer has been the ability to reduce the financing costs, both from equity and debt. Developers expect that the forward sale contracts at a lower price will be compensated by lower financing costs and ultimately achieve the average market return on investment. However, results reveal that this benefit has not been achieved and projects financed using forward sales/pre-sales contracts recorded lower return on investment compared to market rate of return on similar investments. Finally, the study concluded that pre-sales contracts are not a return enhancing financing model for residential real estate investment in Kenya.

The bedrock of a good valuation is the Valuer’s ability to use appropriate methodology to convincingly support the opinion of value and presenting same in clear and unambiguous terms in the valuation report. The ability to use any of these methodologies well largely depends on adequate and reliable data available to the Valuer at the time of Valuation. Obviously, every valuation report is a reflection of the professional image of the Valuer and can either enhance or tarnish this image.
In as much as Valuers in Ghana work hard to carry out Valuations that meet international standards, the major challenge is the ability to get adequate credible data to support valuations. This often delays the valuation process, among others.

The purpose of this research is to

• Expose the difficulty in accessing reliable data.
• Discuss how inadequate information as a challenge affects Valuers in Ghana.
• Suggest solutions and to welcome further suggestions on ways to circumvent these challenges. 

The study will be restricted to the operations of Valuers and Valuation practice in Ghana; however it is believed the issue is a phenomenon in developing countries, hence allusions will be made to other countries where necessary.

The undergraduate BSc degree in property studies offered by the School of Construction Economics (CEM) at the University of the Witwatersrand (WITS) currently does not have work place experience or internship as a curriculum requirement.  Practical work experience has been included in numerous real estate degree programmes at various universities around the world.  Given the numerous work opportunities that graduates have when entering the real estate profession, the value of work place experience as a curriculum requirement may assist the property student to decide upon a suitable career path and also make that student more valuable to potential employers when graduating.  Work place experience or an internship programme will allow for the integration of theoretical concepts learned in the classroom environment with practical application in the work place.  This may also ensure that the graduate is able to find employment far sooner than without having the work place experience and improve the value of the graduate to potential employers.

This paper is part of an ongoing research project.  The undergraduate BSc degree in property studies offered by the School of Construction Economics (CEM) at the University of the Witwatersrand (WITS) is a fairly new degree with the first group of students having graduated in 2005.  Final year property studies students, as well as all graduates since 2005, were surveyed to assess their views regarding certain aspects of the property profession generally and more specifically the potential value of work place experience as a formal curriculum requirement.

The purpose of this paper is to:

• Share the results of research conducted with the final year undergraduate property studies students in CEM at WITS;
• Share the results of research conducted with graduates of the undergraduate property studies degree in CEM at WITS;
• Compare the results of the research of each sample;
• Suggest how work place experience or an internship programme could be included in future curriculum development of the undergraduate property studies degree offered by CEM at WITS; and
• Suggest how work place experience or an internship programme could be included in other real estate programmes in South Africa as well as other emerging countries."

Land Administration in Ghana is characterized by multiple stakeholders made up of public institutional actors, customary landowners, private sector operators and individual land acquirers.

Multiplicity of customary rights over land juxtaposed against multiple legislative rules and regulations produces a veritable tinder box of disputes over land ownership, land boundaries, land rights and use.

The judiciary as the arbiters is expected to bring closure and certainty in such disputes. Recent research however suggests that court decisions rather appear to be accentuating disputes, distorting customary land rights, fueling land use planning distortions, encouraging encroachments on public lands and the use of self-help.

This presentation outlines some key observations from this ongoing research and the impacts on land administration in the capital city of Ghana Accra.

Purpose: The purpose of this paper is to ascertain the current strategic property management practises in the state and county government sector as well as in some industrial companies in Sweden in view of limited access to capital or government funding due to the economic recession. 

Design/methodology/approach: A quantitative method based on an electronic self-administered questionnaire to the company managers was used. 

Findings: The results indicate that the degree of special property ownership in the surveyed companies is still high and that the probability of an expansion of the property leasing market in the coming five years is very low. The findings further reveal that the government sector has a higher level of adherence to set maintenance plans as well as longer payback duration on investments and that the government companies lean more towards maintenance than an investment when classifying activities in their accounting. Though the maintenance plans in the public sector were shorter than those in the private sector there is very little neglected maintenance in the industry in contrast to the government sector especially in the counties. 

Originality/value: The key findings are of use in other countries that are considering privatisation or sale-leaseback transactions of large property portfolios under government ownership and provide new insights on the strategic maintenance of the properties in question. 

This paper aims to determine the maturity of real estate markets in Sub-Saharan Africa (SSA) with focus on the United Republic of Tanzania and the Republic of South Africa. The present study is based on an empirical investigation of local real estate experts’ perceptions concerning the Tanzanian and South African real estate market. The questionnaire survey is considering the countries characteristics and their real estate markets within categorical rating scales. The individual markets are investigated on the basis of market maturity features such as market transparency, connectivity with international capital markets, commercial building offer, domestic and international corporate base. The comparison between nascent Tanzania and emerging or mature South Africa represents the diversity of the real estate market characteristics in the SSA region. Potential foreign real estate investors are provided with objective information concerning the real estate market activity in order to identify the opportunities and risks in comparison to global investment alternatives. As Sub-Saharan Africa represents all African countries located south of the Sahara the region is characterized by diverse geographical, socio-cultural and historical conditions. Therefore, the real estate market maturity indicators can only be carefully adapted to other African countries and the role of real estate market efficiency has to be analyzed in future studies. Benchmarking tools such as the Market Maturity could bridge the gap between investment opportunities and the absence of foreign real estate investments activity in Sub-Saharan Africa.

This research provides an overview of the perceptions of South African Real Estate Investors entering the African Property market. Specific consideration is given to the important difference between perceived and real risk associated with these markets. The paper is based on a sample of 24 investors and considers the type of legal partnerships that South African investors use to mitigate risks associated with these markets. In addition, it reflects on the sectors that South African Investors target in Africa. It concludes that the risk/return profile in many African countries is attractive to investors.

Real estate plays an important role in national development process but surprisingly, it is one that has received little attention in the literature on development economics, emerging market finance as well as international real estate investment markets. Real estate markets contribute to economic development in a number of ways. A flexible and efficient supply of property assets is needed to support economic growth, and to attract inward investment in productive sectors. The expansion of property stock and rise in its value form a major part of the accumulation of wealth associated with successful economic development in the capital markets. And property values in turn represent a primary source of collateral for commercial banks to lend to individuals and businesses. In addition, property is a major potential source of tax revenue for central and local governments, especially in Sub-Saharan African countries where cash-based informal economies hamper the collection of other forms of taxation. Data on property related taxes from three national and local government sources “the Land Valuation Division of the Lands Commission, Domestic Revenue Division of the Ghana Revenue Authority and Accra Metropolitan Assembly“ have been analysed to show the impact of property market on national development. A time series analysis of revenue from property transactions shows a high performance rate for stamp duty, gift tax and property rate for the six year period ending 2010. The results show total revenue from stamp duty in Ghana increased by 573% from US$1,083,211 in 2000 to US$7,284,679 in 2007, an annualised increase of 31% per year in revenue over the seven year period.

Real option valuation has been viewed as a highly academic concept that has limited practical value because it focuses on valuing individual real options without providing a general theoretical framework. It may, however, not be denied that real options exist save for the fact that a universal conceptual framework is yet to be established. Real option reflects the entrepreneurial view of an investor of a project development’s flexibility and growth options and the active decisions embedded in a project rather than the traditional space, money and time triangle. By synthesising the characteristics of options attached to an investment opportunity, it is possible to estimate the value of inherent options attached to an investment opportunity. The objective of this paper is to establish whether or not there is option value in vacant development land in Windhoek, Namibia. The City of Windhoek municipality offers vacant development land for sale using open bidding for residential plots and sealed tender for commercial plots. The floor price is estimated at an assumed market value referred to as upset price which however is not revealed to the bidders. In an auction of commercial business and industrial plots conducted in July 2009, the bid/upset price ratio ranged from 1.7 to 11.2 with an average of 4.2. Since the bidders were not aware of the upset price and competing bids, it can be assumed that they acted independently and based their bid prices on the inherent option value of the investment opportunities in the plots. We investigate flexibility options to reduce, alter or delay project development. The purpose of this paper is to elaborate the real option concepts and demonstrate their application in practice contributing to enhancing real estate practioners’ critical thinking ability that will enable them determine the timing and level of development that can be undertaken under given circumstances. Using data from the period 2008/09, we examine the option to delay in four suburbs in Windhoek and consider densities of 1 dwelling per 200m2, and 1 dwelling per 350m2. We find real option value being prevalent in 1/200 densities in 3 of the 4 suburbs and no option value in 1/350 for all locations. We conclude that townhouse development in is more viable at 1/200 density.

Urban areas in almost all cities of Tanzania are characterized with dire lack of physical infrastructure, mainly access roads, storm water drainage networks, unnamed streets, community meeting places and to a lesser extent running water. Lack of financial resources by the Government and laxity in enforcing land use regulations account for this state of affairs not only in the urban sector but also in all other sectors of the economy. Unlike developed countries, Tanzania has a much larger informal sector that accounts for up to 60% of the national income. Much of the human as well as social capital resides in this sector. Over the last 10 years, attempt was made by a government agency, the Tanzania Social Action Fund (TASAF) to tap resources in the informal sector. A number of projects were hatched and with minimal financing from TASAF, projects' objectives were achieved through these alliances between a government department and communities in the informal sector. Alliance between TASAF and residents of Mbezi, a new planned district of Dar es Salaam, culminated in realizing road infrastructure. The main argument of the paper is that whereas social capital would presume a situation of trust that develops out of a commonality of factors such as sharing traditions, it is possible to inculcate in people irrespective of their income levels, trusts, reciprocity and eventually networking that is crucial in realising common solutions to their problems. The conclusion from the paper alludes to the fact that individual solutions to infrastructure problem such as resorting to four-wheel drive vehicles are neither sustainable nor affordable in the long run. Community participatory approaches in tackling provision and maintenance of infrastructure for both low and high-income population areas are possible. Increased involvement of the people in working for their own development is the only surest way of solving both economic and social problems in the developing world.

Land use planning activities in developing world including sub-Saharan countries has been criticized as being outdated models and practices of physical planning. The existing land use regulations and urban planning codes have precipitated procedural rigidity on builders and property developers and have resulted in haphazard development, slum and urban sprawl. The aim of this paper is to examine the application of relational indicatorset model in planning of Lagos mainland local government area. Estate surveyors and valuers, town planners and property developers in Lagos metropolis were randomly selected and questionnaire was administered to them. 85% of the questionnaire was returned. The analysis of the questionnaire was carried out using frequency, mean, variance, Pearson correlation, relative index and multiple regressions. Some of the objectives suggested for the study area include promoting redevelopment of older and obsolete residential area, maximizing benefit derived from investment in community facilities and infrastructure and to ensure that the area is served by attractive commercial areas in appropriate locations to meet the needs of residents and visitors. In addition, the analysis revealed that there is a significant interrelationship among the indicators and that the objectives of planning are determinant of enhanced property values. Hence, land use plan should be scrutinized, monitored, evaluated using indicators that are sufficiently flexible to accommodate periodic modifications to fulfill its objectives.

Purpose:  The principal argument in this research is based on the fact that statistical data are very necessary for the formulation of policy and planning to target informal settlement challenge. Quantitative data is increasingly being used for planning issues such as access to housing, health, socio-economic activities and infrastructural provision. These key services that keep the urban environment functional cannot play the expected role with regard to development if data availability is lacking.

Problem of investigation:   Research has shown that Informal settlement varies greatly in their size and location, the way that they are formed and the reason why people live in them. Upgrading intervention has been noted to neglect the importance of data on the number of people living in a given informal settlement, their sex composition and statistics on their socio-economic issues. By providing information on how many settlements are informal and formal, how many men and women are residing in informal settlements, what is the total number of infrastructures and socio-economic needs such as access to jobs, clinics, education facilities and open space planners will be guided and equipped to adjust or improve policies towards these vulnerable group of urban residents.  

The question that will be answered is: To what extent can the collation of quantitative data on informal settlement assist planners and policymakers in the policy-making process in relation to informal settlements in South Africa? The paper also questions the validity of informal settlement data. 

Design/Methodology:  This investigation will be based on primary and secondary data with the analysis of Census 1996 and 2001 as well as Community Survey of 2009. The study will also use Geographic Information Systems data of the City of Johannesburg. These findings will be contextualised in Johannesburg as a case because this happen to be one of the municipalities with high rate of urbanization and attendant housing shortages.  The sporadic and continuous increase in the number of households living in Informal Settlement as indicated in the Draft report of City of Johannesburg 2011/12 Integrated Development Planning (IDP) to be 180,000 household cannot continue to be neglected or unabated without accurate data for monitoring and evaluation.

Findings: This investigation finds out that data on informal settlement can help in informal settlement upgrade and assist to mitigate service delivery protests and resistance to relocation that is being witnessed in the city.  

Conclusion: There is need for public policy makers and planners to collate data on informal settlement for monitoring, evaluation and effective service delivery and provision. There is need to review legislations guiding housing development using relevant up to date data."

Many professionals have professional bodies that regulate their working practice and valuation is no exception. One of the leading bodies in the valuation profession is the Royal Institution of Chartered Surveyors (RICS). Generally, countries tend to have a professional body which regulates the domestic valuation practice. Professional bodies play roles by regulating the valuation activities in their countries and protect their members and public interests. They also develop standards of practice and promote code of conducts and ethics. Having well-regulated valuation activities and properly trained practitioners ensures that the land and property market operate efficiently and effectively. Given that land is a factor of production, its efficient use therefore promotes economic development. This dissertation presents the results of a study whose aim was to investigate if the lack of not having a professional body in Namibia has any effect on the valuation practice. A few web questionnaires were issued to individuals working in the valuation industry in Namibia which comprises of; government employees, private firms as well as in the financial institutions. In addition several telephone interviews were conducted with the key players in the valuation industry to follow up on the responses provided in the questionnaires. The study findings reveal that Namibia does not have the relevant legislation regulating the property valuation. As such, there is no requirement to employ a chartered valuation surveyor to do valuation in Namibia. The surveyors that are operating in Namibia are mainly qualified only due to their experience in the field. Although there is no law that regulates the valuation practices, there are statutes that require valuation to be done. The situation has not gone without notice evidenced by some concerns from the country's office of the Valuer General. Such concerns have prompted the VG to initiate The Valuers` Bill which is waiting to be presented to the stakeholder. In addition, the research found that there is a lack of capacity among those who are involved in undertaking the valuation functions. The study further found that people with little or no proper valuation qualifications are employed. Without either the law or the professional body to oversee their activities it has been found that a number of unacceptable practices take place. For instance falsification of valuation qualifications; poorly qualified individuals taking valuation responsibilities without any guidance from qualified professionals for which they are ill-equipped to undertake; financial institution not appreciating the significance of properly qualified valuers whose work is overseen by a professional body and ending up appointing clerks, attorneys and people with grade 12 certificates to perform valuations. The lack of a well-established valuation service, in form of having adequate, properly qualified and regulated valuers, affects the government's economic development objectives or service delivery. This is because one of the three production factors, land is inefficiently utilised.

Housing finance market in Uganda is highly segmented. At the upper end it is rare for more than 1 percent of housing construction to be financed through the formal mortgage banking system. At the other end, microfinance clients may have access to loans that can be used to improve their housing. It is in the large gap between these two segments that development of the mortgage market can help. The very limited availability of long-term mortgage finance leaves the majority of the population in the unsatisfactory situation of having to improve their housing incrementally based on a build-as-you-earn basis with the inefficiencies and deferrals that entails. The paper which is based on literature review, interviews and questionnaires discusses why the majority of the population does not apply for mortgages and why people not being accepted by the bank for mortgages. This paper therefore seeks to address the question on how to increase the outreach of the mortgage market. This is based on the legal and financial barriers, both on the supply and demand side.

This paper focuses on property valuation analysed from two perspectives. First, values determined by Government Valuers from the Land Valuation Division of the Lands Commission in Ghana are matched against those assessed by Private Sector Valuers for the same properties. Second, variations in these values (if any) are further analysed to identify sources of deviations; the basis of the recommendations for developing property valuation as a profession in the country. An important aspect of valuation is the availability and accessibility of credible property data. Unlike developed countries, emerging property markets in Africa and other emerging economies are opaque and characterized by thin market transactions. Lack of market transparency and the quality of available data tend to underpin wide variations in property values. In this paper, valuation-based data by both Government and Private Sector Valuers on 2,632 properties affected by urban road projects in Accra, the capital of Ghana have been analysed to primarily demonstrate the level of valuation accuracy. Preliminary results suggest the valuation profession and property market are increasingly developing. Values assessed by Government Valuers and Private Sector Valuers are highly correlated at 93% to demonstrate a high level of accuracy. Significant indicators are therefore provided to guide policy formulation for valuation practices and property market development in Ghana.

This paper examines the sequence of events leading up to, and immediately after the global financial crisis of 2008. Specifically the paper reviews the role played by valuers in precipitating the crisis, the challenge that the crisis posed to the valuation profession and the post-crisis response by various regulatory and professional bodies. The paper distils lessons from the crisis and makes specific recommendations for policy and regulation governing the valuation profession in (South) Africa.