Realities of valuation in an informal context Danilo Antonio: UN-Habitat/GLTN Cyprian Selebalo: UN-Habitat/GLTN

Valuation in Informal context Informal context includes and not limited to: State or public land held in trust by governments and used by citizens. Ownership units that are not formally registered (estimated to be 70% ) Communally owned lands under customary and pastoral usage Natural resources within such unregistered lands including forests, thatching grasses, medicinal plants, water resources, etc. Informal settlements, previously customary lands included in urban boundary, squatter settlements, unplanned settlements

Why VALUATION IN INFORMAL SITUATIONS? To benefit unregistered land owners in urban and peri-urban sprawl Instill equity in developments including ini infrastructure projects entailing compensation Upgrading of informal settlements Large scale land investments and resettlement initiatives Disaster related resettlements, redressing historical displacements, and Individual rights holders/owners –mostly from disadvantaged groups - needing to borrow against their land or do share- cropping or sub-leasing of their land due to socio-economic pressures, etc.

Key challenges Market performance – limited information in informal context Security of tenure – perceptions of insecurity in land tenure, including customary Market distortion – speculative purchases deliberately lowering the values Institutional and governance challenges Corrupt practices Paradigm shift – how to change the mind set of professionals

Implications Inefficient and inequitable land market Limits economic development Uncertainty about value based tax liability Limits value additions of pro- poor programmes Uncertainty over the transparency of the process Additional unofficial payments Affects mostly the poor

Recommendations Increased professional and technical capacity of ‘valuers’ Transparent, effective and efficient land valuation approaches Valuation to depend on all factual data not limited to “de jury” Flexible methods to meet situation, requirements and environment. Valuation to be aligned with continuum of rights approach Enhance trust on valuation for taxation purposes Strengthen institutions Instill governance approaches to limit payment of informal fees

The journey to date – valuation in informal context Continuum of Land Rights GLTN Partners Concurrence 2013 RICS/GLTN Research Report 2014 Fit for Purpose Land Administration 2014 Joint technical session at FIG Congress Expert Group Meeting, Bangkok, Oct 2014 2015 Joint technical session at FIG WW 2016 Joint technical session at FIG WW Draft Guide EGM Aug. 2016

Thank you for your attention Realities of valuation in an informal context NEED TO KNOW MORE? Danilo Antonio: UN-Habitat/GLTN danilo.antonio@unhabitat.org Cyprian Selebalo: UN-Habita/GLTN www.gltn.net www.unhabitat.org