In short
A valuation report is the official document in which an appraiser licensed by the Capital Markets Board establishes a property's market value. It is compulsory in sales involving a foreign national and is valid for a maximum of three months from its date of issue.
The report examines the property's location, zoning status and physical characteristics along with comparable sales in the district, and sets out a value. That value is not an opinion but a technical finding a licensed expert signs for; the land registry and banks act on this document.
It appears in two situations. The first is any transfer in which a foreign buyer or seller is involved. The second is mortgage lending: a bank sets the ceiling of its loan by the report of the valuation firm it appoints. The three-month validity can require a fresh report when negotiations run long.
Why it matters to an investor
For a buyer the valuation report is a protection. A buyer talked into a price above the market returns to the negotiating table on seeing the figure in the report. For an investor it serves another purpose: having a value established by an independent expert strengthens your hand when you come to sell.