Real Estate Appraisal Terminology
24 essential terms for understanding RICS, IVS, IFRS 13 and Moroccan real estate law — each with a short definition, a detailed explanation, and a concrete Moroccan 2026 example.
RICS Valuation
Market Value (MV)
The estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm's-length transaction.
Read more →Capitalisation Rate (Cap Rate)
The ratio between an asset's annual Net Operating Income (NOI) and its Market Value, expressed as a percentage.
Read more →Net Operating Income (NOI)
Gross rental income minus vacancy, bad debt and operating expenses — before debt service, tax and depreciation.
Read more →Discounted Cash Flow (DCF)
Valuation method projecting future cash flows over a holding period (typically 10 years) and discounting them to present value at an appropriate rate.
Read more →Depreciated Replacement Cost (DRC)
Cost to replace an existing asset with a modern equivalent, less physical, functional and economic depreciation.
Read more →Estimated Rental Value (ERV)
The market rent at which a property could be let at the valuation date, assuming the most probable lease terms.
Read more →WACC (Weighted Average Cost of Capital)
The blended required return on an investment, weighting cost of equity and cost of debt by their proportions in the capital structure.
Read more →Terminal Value (TV)
The value attributed to a property at the end of an explicit DCF projection period — usually calculated by capitalising the next year's NOI at an exit cap rate.
Read more →IFRS & OPCI
Fair Value (IFRS 13)
The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.
Read more →OPCI (Organisme de Placement Collectif en Immobilier)
Moroccan real estate investment fund regulated by AMMC; must apply IFRS 13 Fair Value measurement to its portfolio.
Read more →Standards
RICS Red Book
The mandatory professional framework for RICS-qualified valuers, officially 'RICS Valuation — Global Standards'.
Read more →International Valuation Standards (IVS)
Global valuation standards issued by the International Valuation Standards Council (IVSC), aligned with the RICS Red Book.
Read more →Regulators
Moroccan Law
Titre Foncier (TF)
Moroccan registered land title giving indefeasible ownership rights; issued by ANCFCC under Dahir 1913 and Law 14-07.
Read more →VEFA (Vente en l'État Futur d'Achèvement)
Off-plan real estate sale regime under Moroccan Law 44-00 — buyer acquires before or during construction with milestone-based payments.
Read more →Law 49-16 (Commercial Leases)
Moroccan commercial lease law governing all leases of immovable property for commercial, industrial or professional use. In force since 2016.
Read more →Law 18-00 (Condominium)
Moroccan condominium law governing shared ownership of buildings — private units + common areas held in proportional shares (tantièmes).
Read more →Law 14-07 (Land Registration)
Moroccan law modernising the 1913 land title system — establishes ANCFCC-managed Titre Foncier as the gold standard of property ownership.
Read more →Melk
Moroccan private freehold land held under customary title (not registered under the Torrens system). Common in rural areas and old medinas.
Read more →Habous
Islamic endowment property in Morocco — inalienable or very restricted, managed by the Ministry of Habous Affairs.
Read more →Market Context
MRE (Marocains Résidant à l'Étranger)
Moroccan nationals residing abroad — a major investor segment in Morocco's domestic real estate market.
Read more →IPAI
Indice des Prix des Actifs Immobiliers — the official Moroccan real estate price index published quarterly by Bank Al-Maghrib and ANCFCC.
Read more →