Complex Made Simple

RICS MENA participates at Cityscape Jeddah

RICS MENA to address ‘The Value of International Standards in the Real Estate Sector’ at Jeddah Centre for Forums and Events.

More than 50 of the GCC’s leading real estate developers and brokers will be showcasing their projects at this year’s Cityscape Jeddah, taking place for the sixth time at the Jeddah Centre for Forums and Events.

Cityscape Jeddah 2015 comes at a key moment in time for the Kingdom’s real estate development sector where all eyes are on the continuous fluctuation of oil prices and its impact on the real estate sector and how the sector can attract sustainable investment.

With the progressive transition to International Financial Reporting Standards (IFRS) risk in the market can be significantly mitigated by driving transparency delivered through appropriate real estate measurement and valuation.

RICS mandate that all of its members adopt ‘Red Book’ valuations which means that they are following the guidance set out in the International Valuation Standards (IVS). With the KSA government moving towards IVS compliant valuation and as a member of the IVS Council this is a critical initiative.

Underpinning valuation is property measurement i.e. the physical size of buildings and their floor space.

RICS will be talking about the new International Property Measurement Standards (IPMS) which cover Offices (already issued), Residential Properties (under consultation) and Retail / commercial Properties. These standards would bring consistency to the measurement of property space in the Kingdom.

The new industry standard that will bring transparency and consistency to global real estate markets was launched late last year for offices and with the residential property standard following soon. The International Property Measurement Standard for Offices (IPMS for Office Buildings) is the result of a global effort to create a uniform method for measuring property and is set to replace dozens of existing standards currently in use around the world. This week, at Cityscape Jeddah, Robert Jackson, Director RICS MENA will address IPMS: the next step, how companies can start to implement these measurements as best practice.

RICS was a founding member of the coalition that developed IPMS. The coalition now has grown to 55 other real estate associations and standard-setting bodies. Implemented by professionals and professional organisations throughout the world, the standard ensures a single, coherent methodology of measuring and reporting building and floor space areas.

The aim of IPMS is to provide a consistent measurement of Property. IPMS will meet the requirements of Users of Property for consistency in measurement and reporting. Until now the stated area of floor space in identical Buildings has varied considerably between countries, and sometimes within the same country, owing to differing measurement conventions. The measurements can be used for valuation, transaction and benchmarking purposes. This is equally important for Service Providers and Third Parties, so that data can be used with confidence for property financing, building and facility management, research and other purposes.

RICS has produced its own guidance on how to use IPMS:

“This is a huge step forward for the property industry and one which RICS is delighted to have been a part of since the very start. Chartered surveyors play a critical role in providing best practice advice across the property industry in more than 140 countries worldwide. IPMS will ensure that surveyors, their clients and the markets they work in receive consistent, transparent and comparable property measurement information. The work of the coalition will not stop here. Over the coming months and years IPMS will bring measurement consistency to residential, industrial and retail sectors. RICS will now work with chartered surveyors and the property industry to update our guidance, ensuring that it fully reflects the new IPMS standard.”
Robert Jackson, Director RICS MENA

The Dubai Government has already announced plans to make IPMS mandatory in response to a growing international investor base moving into Dubai’s commercial property sector and more than 100 global businesses have signaled their intention to request or use IPMS measurements within their organisations by signing up as Partners of the initiative.

Cityscape Jeddah 2015 is supported by leading local and regional real estate companies including Sumou Real Estate (Principal Sponsor), Ewaan Global Residential Company (Founding Sponsor), Sobha Hartland (Gold Sponsor) and IQI Group (Silver Sponsor).

The Jeddah Urban Development and Real Estate Investment Event – Cityscape Jeddah is now strongly established as the leading real estate events in the Kingdom of Saudi Arabia, where it proudly supports the government’s vision for growth in the real estate industry and highlights iconic architecture and innovative development in the region’s biggest real estate market.