Property valuers anticipate boom in services demand
PROPERTY valuers anticipate a boom in demand for their services in the new dispensation, as Government seeks to undertake potentially multi-million dollar valuations of repossessed farms to compensate white farms.
Valuation Council of Zimbabwe vice chairperson Siza Masuku told The Herald Property Guide in an interview yesterday that compensation of former white farmers required valuation of improvements on the land and lost assets.
“Under the new dispensation there will be increased demand for valuation advisory services for compensation of white former (commercial) farmers. As such, the role of valuers will come to the forefront,” he said.
Mr Masuku said under former President Mugabe’s reign, valuers services were not in high demand, given the administration’s position on compensation of the white farmers whose land Government acquired to resettle blacks.
Further, Mr Masuku said demand for valuation services will increase dramatically going forward, as 99 year leases will bankable while improvements and assets on the farms would to be a factor in evaluation for credit worthiness.
Valuers will therefore hold a seminar in Mazowe this Friday to equip each other with relevant knowledge and information to be able to handle expected increased demand for valuation services going forward.
“This is why we are getting ready as an industry so that when that time comes, it will find us prepared and equipped to be able to dispense our services,” Mr Masuku said.
Former President Mugabe’s government repossessed at least 4 000 white farmers during the land reform programme. The aim was to distribute farms to “landless blacks”.
Former commercial white farmers have reportedly written to President Mnangagwa’s Government demanding about $9 billion compensation for properties and assets they lost during the land reform programme.
The compensation figure includes land, which the farmers valued using regional rates as well as fixed assets.
The bill for fixed assets under the claim amounts to US$5,5 billion.
The $5,5 billion is for assets that don’t exist anymore.
Valuation is a specialised aspect of real estate practice. It is mandatory for all firms offering this service to practice under a registered valuer with a valid practicing certificate.
Over the years, all aspects of real estate practice covering property valuation, auctioning, sales, management, and leasing were administered by the Estate Agents Council.
The estate agency practice is still under the Ministry of Legal and Parliamentary Affairs, administered by the Estate Agents Council of Zimbabwe, and is governed by the Estate Agents Act (chapter 220).
The valuation aspect now governed by The Valuers Act 1996, which came into effect on February 1 2006 and is administered by the Valuers Council of Zimbabwe through the Ministry of Local Government, Public Works, and National Housing.