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 full definition →Capitalisation Rate (Cap Rate)
The ratio between an asset's annual Net Operating Income (NOI) and its Market Value, expressed as a percentage.
Read full definition →Net Operating Income (NOI)
Gross rental income minus vacancy, bad debt and operating expenses — before debt service, tax and depreciation.
Read full definition →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 full definition →Depreciated Replacement Cost (DRC)
Cost to replace an existing asset with a modern equivalent, less physical, functional and economic depreciation.
Read full definition →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 full definition →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 full definition →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 full definition →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 full definition →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 full definition →Standards
RICS Red Book
The mandatory professional framework for RICS-qualified valuers, officially 'RICS Valuation — Global Standards'.
Read full definition →International Valuation Standards (IVS)
Global valuation standards issued by the International Valuation Standards Council (IVSC), aligned with the RICS Red Book.
Read full definition →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 full definition →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 full definition →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 full definition →Law 18-00 (Condominium)
Moroccan condominium law governing shared ownership of buildings — private units + common areas held in proportional shares (tantièmes).
Read full definition →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 full definition →Melk
Moroccan private freehold land held under customary title (not registered under the Torrens system). Common in rural areas and old medinas.
Read full definition →Habous
Islamic endowment property in Morocco — inalienable or very restricted, managed by the Ministry of Habous Affairs.
Read full definition →Market Context
MRE (Marocains Résidant à l'Étranger)
Moroccan nationals residing abroad — a major investor segment in Morocco's domestic real estate market.
Read full definition →IPAI
Indice des Prix des Actifs Immobiliers — the official Moroccan real estate price index published quarterly by Bank Al-Maghrib and ANCFCC.
Read full definition →