Real Estate Valuation L1 Complete Review Guide 2026–2027
Every exam topic in a 30-page Arabic PDF, ordered from the heaviest unit to the lightest. The first three chapters alone cover about 55% of the exam questions.
- 30Pages
- 93Key points
- 36Common mistakes
- 72Flashcards
Guide map
Each chapter is one exam unit, ordered by its weight in the real exam.
| Chapter | Unit | Weight | Exam questions | Key points |
|---|---|---|---|---|
| 1 | Market and income approaches | 20% | 20 | 15 |
| 2 | Regulatory framework and International Valuation Standards | 18% | 18 | 15 |
| 3 | Basic real estate valuation principles | 17% | 17 | 15 |
| 4 | Cost approach, building materials and safety | 17% | 17 | 16 |
| 5 | Real estate valuation procedures | 15% | 15 | 16 |
| 6 | Market analysis and highest and best use | 13% | 13 | 16 |
Chapter 1 in full: Market and income approaches
20% of the exam, about 20 questions. These are its key points, as in the guide.
- Time adjustment example: 1m six months ago with 0.5% monthly growth (simple) = 1.03m.
- A comparable with a 10% better location sold for 1m becomes 900,000 after adjustment.
- Pool value from two identical villas: 1.25m − 1.15m = 100,000.
The rest of chapter 1, on this page
- With adjusted comparables of 820k, 800k, 810k, weight the least-adjusted one; about 810,000 is reasonable.
- PGI = lettable area × rent: 2,000 m² × 600 = 1.2m.
- PGI 500,000, 10% vacancy, expenses 150,000: NOI = 450,000 − 150,000 = 300,000.
- Operating expense ratio = expenses ÷ EGI: 120 ÷ 400 = 30%.
- NOI 200,000 at 10% = 2m; a comparable at 1m with NOI 90,000 gives 9%.
- Terminal value = next year's NOI ÷ exit cap rate: 110,000 ÷ 0.10 = 1.1m.
- An investor's required return depends on risk and opportunity cost (risk-free rate plus premium).
- Lease incentives such as rent-free periods cut effective rent below headline rent.
- Above-market contract rent on a long lease benefits the landlord but adds tenant default risk.
- Fixed expenses (insurance, municipal fees) do not vary with occupancy; variable ones do.
- The income approach best suits let malls and offices.
- Adjustments may be percentages or lump sums, used consistently.
Common mistakes in this chapter
- Net adjustment is the algebraic sum, gross the absolute sum: +10% and −10% give net 0 and gross 20%.
- Before-tax cash flow = NOI − debt service.
- Unsold listings carry less weight than closed sales because they are asking-price ceilings.
- Non-recurring costs such as a one-off capital upgrade are not annual operating expenses.
- In a gross lease the landlord bears most expenses; in a net lease the tenant does.
- The income approach is unsuitable for an owner-occupied home with no rent or rental evidence.
The other chapters are in the full guide
One purchase · lifetime access · review guide included
7-day review plan
The chapters are spread over 6 days by weight so each day carries a similar load. Day 7 is a full exam.
Day 1 · 20% of the exam
Chapter 1: Market and income approaches
Day 2 · 18% of the exam
Chapter 2: Regulatory framework and International Valuation Standards
Day 3 · 17% of the exam
Chapter 3: Basic real estate valuation principles
Day 4 · 17% of the exam
Chapter 4: Cost approach, building materials and safety
Day 5 · 15% of the exam
Chapter 5: Real estate valuation procedures
Day 6 · 13% of the exam
Chapter 6: Market analysis and highest and best use
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The first three key points of each chapter, as they appear in the guide (in Arabic in the PDF).
Chapter 1: Market and income approaches
- Time adjustment example
- A comparable with a 10% better location sold for 1m becomes 900,000 after adjustment.
- Pool value from two identical villas
Chapter 2: Regulatory framework and International Valuation Standards
- The Saudi Authority for Accredited Valuers (Taqeem) was created under the Accredited Valuers Law…
- The International Valuation Standards Council (IVSC) is an independent not-for-profit body based in London.
- Fellowship education condition
Chapter 3: Basic real estate valuation principles
- Valuation is a supported professional opinion, not an absolute fact.
- Forces affecting value
- Supply and demand
Chapter 4: Cost approach, building materials and safety
- Soft (indirect) costs include design, permits, finance and insurance.
- Building costs in remote areas are higher because of transporting materials and labour.
- Cost per m² is affected by quality, design, location and project size.
Chapter 5: Real estate valuation procedures
- For let property the valuer requests leases and income and expense data.
- Core documents for a villa
- Land building regulations are checked with the municipality.
Chapter 6: Market analysis and highest and best use
- Legal non-conforming use was lawful before rules changed and may continue with limits on…
- Developer profit is a percentage of cost or development value, as the market does.
- Re-run HBU when residential land is rezoned commercial.
The full guide comes with lifetime access
The full guide (30 pages) is included with lifetime access to this exam, together with every question and full mock exam. Chapter 1 is free for everyone.
Questions about the guide
Is the guide free?
Chapter 1 is free to read on the guide page. The full guide comes with lifetime access to this exam; 7-day access does not include it.
Is it up to date for 2026–2027?
Yes. Unit weights and exam facts follow what the exam body last published, and the last check date is printed in the guide. If the standards change we update the file and buyers download the new version.
Does the guide have questions?
No. The guide covers key points and common mistakes; scoring, weak-area practice and full mock exams are on the site.
Can I read it on my phone?
Yes. A5 pages in a single column, with chapters linked from the contents.
- Pages
- 30
- Edition
- 1448 AH · 2026–2027
- Language
- Arabic
- Last updated
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