REAL PROPERTY VALUATION IN EXPROPRIATION IN ETHIOPIA: BASES, APPROACHES AND PROCEDURES

The purpose of this paper is to examine the existing real property valuation practice in case of expropriation in Ethiopia and to propose potential bases and approaches compatible to the Ethiopian real property system based on desk review research in which existing literature are the main source. The paper found that, there is no standard and responsible institution for property valuation. As a result, valuation variation and valuation inaccuracies are common. Therefore, market value can be a potential base to real property valuation as it reflects the actual value of the property expropriated. Market and income approaches can be the potential methods to real property valuation. But discretion is given to the valuer to choose the appropriate method/s. The paper recommends the establishment of independent institution responsible for overall valuation activities including establishing standards and introducing valuation certification by considering the countries’ land tenure system.