The key facts

  • Mass valuation results are not applied directly in transactions, mortgages and demolition compensations — only as preliminary analysis and a reference point
  • If dissatisfied with the result, the owner may engage an independent appraiser
  • In mass valuation, all properties are considered to be in an average renovated condition due to incomplete data on their actual condition

What the center's representatives explained

Feruz Sultonov, deputy director of the National Center for Mass Valuation of Real Estate, explained how the results of the mass valuation of housing will be applied. According to him, they are not used directly in sale, mortgage or expropriation for public needs. In case of demolition, mass valuation may serve only as a preliminary analysis and a reference point, while final compensations are calculated under the current legislation on compensation payments. If the owner or investor disagrees with the result, an independent appraisal organization may be engaged, reports Kun.uz.

How mass valuation differs from individual valuation

Sultonov explained the difference between the two types of valuation. In mass valuation, properties are not inspected: large arrays of data are analyzed using a unified methodology. In individual valuation, a specialist inspects the property and determines its value based on its actual condition. Therefore, in mass valuation all properties are considered to be in an average renovated condition — the reason given was the lack of complete data on the actual renovation condition of the properties.

Why the system is being introduced and what will change for owners

The purpose of introducing the system was stated as determining the value of real estate as an economic asset under a unified approach: currently the price in listings, the value of transactions, mortgages, insurance and taxation differ, and the current cadastral value does not reflect the real market price. According to Sultonov, unless otherwise established by law, the results of mass valuation do not exclude independent valuation. Instead of the minimum prices currently set for notarial actions, the mass valuation value is expected to be used in the future; the owner will be able to engage an independent appraiser and submit his calculations to the tax authorities. Sultonov also did not rule out that, due to the novelty of the system, individual shortcomings are possible, and declared readiness to cooperate on improving the methodology.

Timeline of the discussion

It was previously reported that the discussion of the results of the mass valuation of housing in Tashkent has been extended until December 4. Thus, owners still have time to review the results and submit comments before the system begins to be applied in practice.