RICS seeks views on future of commercial property valuations

An Independent review, established by the RICS Standards & Regulation Board in October 2020, into how commercial property is valued has launched a call for professionals, consumers, and stakeholders to get involved – seeking their views on whether updated guidance is needed.

The review was established to maintain confidence in the valuation practices of RICS professionals are seeking evidence around four principal areas that form the foundation of commercial property valuation, i.e. the methodology behind valuation, identifying risk, maintaining independence and how value is measured.

Some of the review questions include whether new, more prescriptive rules are needed and whether the existing Red Book remains the right global framework to deliver quality valuation services.

Views are also being sought on specific ways a valuer’s objectivity and independence in the marketplace can be protected and enhanced, which would allow consumers and stakeholders to continue having full confidence in the advice provided.

Commenting on the launch, Mr. Peter Pereira Gray, Independent Chairman of the Valuation Review, said, “Valuers and the users of valuations are working with significant structural shifts in investor sentiment and occupier demand for real estate which is changing the marketplace and public and regulatory expectations of valuers. It’s why I have launched a Call for Evidence, setting out the context for the review and the specific areas that I would welcome stakeholders, consumers and industry to respond to.”