Valuations are necessary for various purposes related to the development, occupation, and ownership of property. The specific purpose and type of property being valued will determine the nature of the valuation, including the techniques used and the basis for estimating value. Real property assets and markets are unique compared to other goods due to their heterogeneity and immobility. These factors make the market for buying, selling, and leasing real property illiquid, localized, and highly segmented, with privately negotiated transactions and high transaction costs. Consequently, real property becomes more valuable either due to technical and economic changes or increased scarcity of productive land and real property driven by population growth in Ethiopia.
In Ethiopia, the value of real property is needed for various purposes, and there is a demand for experts in proper administration and management of property valuation. Currently, fair property valuation is essential for multiple reasons, but there is a lack of skilled professionals in the market to meet this demand. Although educational and training institutions are expected to play a crucial role in providing qualified individuals who can conduct property valuations and ensure fairness, there are few higher education institutions in Ethiopia that train professionals with the necessary skills and knowledge for different purposes of property valuation. Consequently, there is a significant shortage of professionals in this field, and graduates of such programs have ready employment opportunities in public and private organizations, including land administration bureaus, tax authorities, banks, and insurance companies.
There is a significant demand for property valuation professionals who can work in various sectors such as real estate developers, insurance companies, urban and rural land and property administration, judgment execution, banking industries, and compensation expropriations. Fortunately, the Department of Real Property Valuation was established in 2022 at Woldia University. The department aims to train and supply skilled professionals capable of conducting accurate and fair property valuations, thereby supporting the diverse needs of these industries and ensuring the proper administration and management of real property valuation in Ethiopia.
