A discussion on mass appraisals: Case study on land plots, views of local appraisers and the future in property valuations

Mass appraisals constitute a cost effective and efficient way of valuing multiple properties in a consistent, fair and transparent manner since properties with similar attributes and characteristics will be assigned similar values. It is for this reason that various governments worldwide view them as a useful tool for the purposes of calculating tax base values of properties for the imposition of property taxes and levies upon their taxpayers. The purpose of this research paper is to examine the accuracy and reliability of property values generated by mass appraisals. A case study was performed on the most recently published mass appraisal in Cyprus being the general valuation of 01.01.2018 conducted by the Department of Lands and Surveys (DLS) with the assistance of local professional valuers. Multiple regression analysis (MRA) was carried out at the municipality of Agios Athanasios level, Agios Athanasios quarter in Limassol District for the purposes of further assessing the prices generated from the general valuation of 2018 in Cyprus. This research paper also aimed to identify ways to increase the accuracy and reliability of mass appraisals, to assess the degree and frequency of their usage in local practice and to conclude on whether mass appraisals constitute the future direction of the valuation profession based on relevant literature review and insightful information obtained via primary research, namely a questionnaire survey conducted among professional valuers operating in Cyprus.