Articles · November 2026

How to choose the right real-estate valuation expert

Academic qualification, professional experience and an understanding of buildings

By Eng. Salah Salem Al-Bakri — Accredited Arbitrator at the Qatar International Center for Conciliation and Arbitration (QICCA), and Ministry of Justice accredited engineering and real-estate expert

اقرأ المقال بالعربية

The competence of a real-estate expert is not measured by knowledge of current sale prices, nor by years of practice alone. Professional valuation rests on understanding the asset being valued and analysing its condition, its use and the factors that affect its value. The more complex the property, the greater the need for an expert who combines a relevant academic qualification with specialised professional experience.

A valuation report underpins a financing decision, a purchase, the division of an estate or the settlement of a dispute. Choosing the expert is therefore not a formality; it is a decision that directly affects the soundness of the results and the fairness of everything built on them.

Qualification and experience: two complementary elements

Academic qualification gives the expert a methodical foundation for understanding principles and analysing data, while professional practice gives the ability to apply them in varied real-world conditions. Neither replaces the other: a certificate alone does not prove mastery of valuation, and repeating the same work for many years does not guarantee a sound method.

Relevant experience is not just a length of time. It is documented practice with the same type of assets and assignments, reflected in the quality of previous reports, the soundness of the analysis, and the ability to explain the result and defend its assumptions. Someone used to valuing residential land should not automatically be assumed competent to value an industrial facility or a complex operational property.

Knowing the price is not understanding the property

A built property is not an area multiplied by a going rate per square metre. It is a structure, electrical, mechanical and plumbing systems, insulation and finishes, each with its own condition, useful life, and maintenance and replacement cost.

An expert who lacks technical knowledge of buildings may overlook indicators that affect value, or fail to recognise when a case calls for a specialist opinion. He may treat two buildings similar in location and area as equal, even though they differ in construction quality, system efficiency and the extent of deferred maintenance.

Nor is the age of a building enough to judge its condition. An older building may remain efficient thanks to maintenance and renovation, while a newer one deteriorates through poor construction or neglect. Ignoring this difference weakens the basis of comparison and estimation.

Purposes of valuation: the purpose determines the value

No single figure suits every purpose. The purpose of the valuation determines the basis of value required — market value, fair value, investment value or forced-sale value — as well as the valuation date, the scope of work and the level of detail in the report. The main purposes of valuation include:

• Financing and mortgage: banks rely on market value with a cautious view, focusing on how readily the property can be sold and the potential risks to the security.
• Sale, purchase and investment: to establish a fair price for the transaction, or the investment value of the property to a particular investor according to his target returns.
• Financial reporting: to record the fair value of real-estate assets in companies’ financial statements in accordance with accounting standards, and to revalue them periodically.
• Division of estates and dissolution of partnerships: these assignments require complete impartiality and a high degree of accuracy, because the result is a distribution of rights among several parties.
• Disputes before courts and arbitral tribunals: these may require the value at a past date, such as the date of the contract or the date the damage occurred, rather than the date of the report.
• Expropriation for public benefit: to assess the compensation due for the property and for any damage resulting from the expropriation.
• Insurance: usually based on reinstatement (rebuilding) cost, not on the market value of the property.
• Leasing: to determine the fair rental value when contracts are concluded or renewed, or when the rent is disputed.
• Contributions in kind to companies: when a property is contributed to a company’s capital, or in mergers and acquisitions.

A report prepared for one purpose may therefore not be suitable for another, even for the same property. The report must state explicitly the purpose of the valuation, the basis of value adopted and the valuation date.

How value varies with location and other factors

Two properties may be identical in area, specification and age, yet differ greatly in value because of location. Location means not only the name of the district, but also the position of the property within it: land on a main road differs in value from comparable land on an internal street, and a corner plot differs from a plot with a single frontage, even in the same neighbourhood.

Location factors that affect value include:

• Proximity to main roads, metro stations and services such as schools, hospitals and shopping centres.
• Street width and number of frontages, ease of access and parking.
• Views, such as sea views or views over open spaces — and, conversely, the negative effect of noise or proximity to industrial activity.
• The character of the surroundings, the level of development in the area, and planned future projects.

Beyond location, value is affected by other factors that are no less important, including:

• Permitted use and building regulations, such as plot ratio and number of floors: two adjoining plots may differ in value because one is zoned residential and the other commercial or investment.
• The legal status of the property, such as the type of ownership, and any mortgage, third-party rights or pending dispute.
• The shape, area and level of the land: an irregular plot, or one that is difficult to develop, is not comparable with a regular plot.
• The condition of the building, the quality of its construction and its systems — the factors discussed in this article.
• The tenancy position, such as occupancy rate, the terms of existing leases, and how closely rents match the market.
• Market conditions at the valuation date: value is assessed at a specific date and changes with supply, demand and financing costs.

The expert is expected to determine the effect of each factor using a clear and justified method, not a lump-sum estimate, and to link it to the valuation approach he has chosen.

The three valuation approaches: where technical knowledge matters

The International Valuation Standards (IVS) recognise three principal approaches to estimating value. The expert selects the most appropriate approach, or combines more than one, according to the type of property, the purpose of the valuation and the available data. Each approach has a point where understanding the building becomes essential.

1. Market approach (comparison)

Estimates value by comparing the property with similar properties recently sold or offered, then adjusting for differences in location, area, age, condition and specification. It suits land and residential units for which sufficient transactions are available.

Technical knowledge shows in the adjustments for condition and quality: an adjustment for “building condition” cannot be accurate unless the expert understands what actually differs between the subject property and the comparables.

2. Income approach

Estimates value on the basis of the income the property is expected to generate, either by capitalising the annual net income at an appropriate yield, or by discounting future cash flows to their present value. It suits investment and commercial properties such as towers, compounds and retail units.

Technical knowledge shows in estimating operating and maintenance expenses and the expected replacement costs of the main systems. These are what separate gross income from true net income, and any error in them is reflected directly in the value.

3. Cost approach

Estimates value on the basis of the cost of constructing a substitute building of equivalent utility at current prices, less depreciation in all its forms — physical, functional and economic — plus the value of the land. It is mostly used for specialised properties that are rarely sold or leased, such as schools, hospitals and industrial facilities.

It is the approach that relies most on engineering knowledge, as it requires estimating construction and systems costs, the remaining lives of the building elements, and the appropriate depreciation rates for each.

The right approach is not a matter of personal preference; it is governed by the type of property, the purpose of the valuation and the availability of data. Where more than one approach is used, the expert is expected to explain why their results differ and to justify the weight given to each approach in the final conclusion.

How does a technical shortfall affect the valuation result?

Suppose, for example, two investment buildings that generate similar rental income, but one of them needs its air-conditioning systems replaced, leaks treated and major maintenance carried out, while the other needs none of this.

Relying on current income or external appearance alone may produce similar valuations for the two buildings that do not reflect the real difference between them. The required works affect future cash flows, operating costs and the continued use of the property.

This is where technical knowledge proves its value: in spotting the indicators, requesting the appropriate inspections, and assessing the effect of their results on value with a clear method, while avoiding counting the same effect twice. The expert is not required to diagnose every defect himself, but he must recognise the limits of his knowledge and not base his conclusion on unverified assumptions.

The complexity of the assignment matters more than the height of the building

The complexity of a valuation is not measured by the number of floors. A single-storey cold store may require more specialised knowledge than an ordinary multi-storey residential building.

For factories, hotels and other operational assets, the value of the property must also be separated from the value of the equipment or the business, and what the valuation includes and excludes must be clearly defined. Each element has its own characteristics, method and the expertise required to value it.

Questions to ask before appointing an expert

• What is his academic qualification, and is it relevant to the nature of the property being valued?
• Has he valued similar assets in type and size? Can you see sample reports with the client details removed?
• Is he accredited by the competent authorities, such as the Ministry of Justice roll of experts?
• Has he understood the purpose of the valuation, and what basis of value will he adopt accordingly?
• Which approach will he use, and why does it suit this particular case?
• Does the assignment include an actual inspection of the property and its systems, or is it limited to documents?
• When will he call on another specialist, such as a structural engineer or an equipment valuer?
• Does he have any relationship with, or interest in, the parties to the property or the dispute?

This does not mean that every engineer is qualified to value property, nor that a non-engineer necessarily lacks competence. What is required is that the necessary technical knowledge be available and demonstrable, either in the expert himself or through his use of suitable specialists. A valuation report remains an estimate of value; it is not a certificate of the building’s soundness, nor a substitute for a specialist engineering inspection.

Conclusion

The most suitable expert is the one whose knowledge and experience match the nature of the assignment, not simply the one who holds a title or years of practice. A shortfall in understanding buildings and their complexities is not a minor gap; it can become a direct cause of a weak valuation and of the decisions based on it.

This article is for general professional awareness; the example in it is hypothetical, and it does not constitute advice on any particular case.