Property valuations; procedures and methods

What's involved in the property valuation process in Cyprus?

In order to obtain accurate and real property value when selling and buying, property valuations must always consider the crucial determining factors of macro market conditions and trends, property-building specs and exact property location. At the same time, property price comparisons and benchmarking is a primary tool for defining and verifying values according to each property market, property type and property location.

Macro market analysis: property values must always be determined in a wider market context, and in turn factor changing dynamics and trends. Key elements include macro economic conditions and trends, such as in GDP and GDP growth, inflation, interest rates, foreign direct investment and any major investment initiatives, unemployment rate and consumer confidence/purchasing power, as well as any major political and geopolitical changes. Trends in these areas directly influence economic conditions of a market and in turn property prices.

Property and building specs: each property is of course unique and as such must be valued on an individual property basis. Consider obvious factors such as property type (apartment, detached house, semi-detached, town house, villa, agricultural, commercial, industrial), size, facilities and amenities, age, and condition – determined by a specific building survey, which also looks at any recently completed or necessary renovations/restorations and structural repairs. Property valuations must then inspect properties inside-out.

Property location: as it is commonly referred to in real estate as location, location, location. Just as each property market and type is different so to is each property location. Location aspects that are considered when determining a property's value include proximity to town centre, business districts and/or coast, surrounding neighbourhood, local facilities (i.e. schools, leisure centres, libraries, cultural centres, entertainment, bicycle lanes, parks and green areas, etc.), transport and accessibility, road infrastructure, as well as upcoming town planning and urban development projects.

Property price comparisons and benchmarking are then utilised to verify property values. For instance, benchmarking similar property types in similar markets and locations; vital when selling or buying.