18th December 2020
Two thirds of global wealth is estimated to be made of land and property assets – are the methodologies behind their valuation still fit for purpose? The Royal Institution of Chartered Surveyors (RICS) has commissioned an independent report, chaired by Peter Pereira Gray, to investigate. Meia Harnett, Supervisor, provides commentary below.
The RICS is a globally recognised professional body, implementing qualifications and standards in valuation, management and development of land, real estate, construction and infrastructure.
The RICS Standards and Regulations Board have responded to market concerns on the structural developments in investor and occupier demand for real estate and how the valuation process may not be currently fit for purpose. Consequently, the board have commissioned an independent review of property assets for investment purposes.
The review aims to make recommendations to RICS in respect of real estate investment valuations which will ensure services remain relevant and trusted. Recommendations are to be delivered to the RICS by September 2021.
The review will deliberate with several key stakeholders and will focus specifically on valuation methodology, independence and objectivity, property risk analysis and measuring confidence.
For further information on the above please view The RICS terms of reference.