Professional Perspective on Contemporary Valuation Techniques in Tanzania: the case of Hedonic Pricing Method

Yusuph Abdi Iddi and Upendo Matotola

AfRES from African Real Estate Society (AfRES)

Abstract: The property valuation industry has embraced various approaches to improve accuracy and provide clients with up- to-date property market information. One such approach is the Hedonic Pricing Method (HPM), which values properties by considering how the public values neighborhood features. Despite HPM's growing influence in global South countries like Nigeria and South Africa, it has received little attention from professional valuers and researchers in Tanzania. This study emphasizes the need for valuers to understand clients' perceptions of property attributes to analyze and interpret the property market effectively. The study evaluates the awareness and adoption of HPM among professional valuers in Tanzania. Data was collected from distributed questionnaires to registered valuers, and statistical analysis was conducted using SPSS software. The findings indicate that most practitioners in Tanzania are unaware of HPM and have not used it in practice. However, they express interest in acquiring knowledge and applying HPM to interpret property values. The study concludes that, when other requirements of understanding and adopting contemporary valuation techniques are met, adoption of HPM will be achieved which will assist in bridging the gap between theory and practice to achieve sustainable property valuation practices.

Keywords: HPM; Neighborhood Attributes; Property Valuation; sustainability; Tanzania (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2023-01-01
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Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:afres2023-002

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