• Sherif Samy: The Workshop on the Egyptian Real Estate Appraisal Standards was held in light of a ministerial decree that obliges the public entities to abide by those standards
• Applying real estate appraisal standards in administrative units will enhance transparency and integrity and promote investment climate
Sherif Samy – EFSA’s Chairman affirmed that the Egyptian Real Estate Appraisal Standards are considered as a reference or a binding approach for all real estate appraisal experts so that the results of the real estate evaluation will be consistent, objective and comparable. He added that anyone who may violate those standards will be held liable. Also, he noted that these standards which were issued by the Authority represent a qualitative leap in the valuation process and that their importance is related to their impact on various aspects of financial activity, both in banking, including financing and real estate guarantees or all that is related to real estate investment trust (REIT) and real estate financing companies and financial leasing companies besides insurance activity through property insurance or all that is related to offering properties as in-shares in the companies’ capitals.
In the opening of the workshop which was organized by the financial services’ institute and attended by more than hundred representatives from the ministries , Authorities and financial institutions in Egypt , Sherif Samy pointed out that the ministerial decree which was issued last month obliges the administrative units and public companies to apply the Egyptian Real Estate Appraisal Standards so as to enhance the objectivity of evaluation process in addition to reducing corruption and adopting a unified reference in Egypt committed by everyone who evaluates. Accordingly, these standards are applied to the transactions of those entities whether in selling, buying, leasing or usufruct of real estate properties.
Dr. Ahmed Anis, coordinator of the working group that prepared the Egyptian Real Estate Appraisal Standards introduced its components. He pointed out that it includes an introduction to the standards which aims at providing the general principles and concepts for practicing of real estate appraisal and the Code of Conduct in the Arab Republic of Egypt. This is followed by valuation standards which are divided into three standards related to the calculation of market value and preparation of the evaluation report, all of which are binding upon practicing real estate appraisal in Egypt. Also, it includes valuation methodology, valuation for the preparation of financial statements, valuation for financing cases, valuation of projects and facilities under construction. He added that these standards are accompanied by explanatory notes covering valuation methods: comparative selling method, income capitalization method, cost method.
On the other hand, Dr. Iman Zakaria- Head of the central Dep. of finance activities at EFSA , said that the number of real estate appraisers who are listed at EFSA’s registry reached 194 experts compared to 188 at the end of the same period last year. She noted that last year for the first time, EFSA’s BOD has issued the rules for listing of real estate appraisers. The said rules require that the real estate company shall be an Egyptian joint stock company and its scope of work shall include real estate activities. The rules also stipulate that the board of directors of the company shall include at least one Egyptian member and that the managing director shall be listed at EFSA’s registry. It also stated that the company’s team shall include at least two real estate appraisers who are listed at EFSA’s registry – including the managing director – with at least one of them who must be an Egyptian .