How property valuation model, uniform standards can boost development, by don

FOLLOWING the influences of technology and changing economic systems on income valuation methodology, a university don is advocating a new investment valuation concept that would reflect the changing economic environment in the country.
Prof. Cyril Ayodele Ajayi of Obafemi Awolowo University, who delivered an inaugural lecture last week argued that “valuation practice in Nigeria has become rather non adaptive, conservatively sticking to outdated models.”  He said new generic unified income valuation models are overdue to meet the demands of globalization.
“Future international valuation standards and guidance notes should mould valuation models to utilize similar uniform formula and terminology, ease calculation, common definitions, recognizable symbols, and notations,” he said.
Speaking on Property Market Dynamics and Paradigm shifts in Property investment Valuation Methodology, the Professor of Estate Management, he called for a shift back to investment valuation. “Since it reflects the market better than replacement cost method for open market valuations of income producing property. Valuers should revise the yields they employ in recession times regularly to compensate for changes in investors’ expectation of income growth.”
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