RICS is aware that structural changes are occurring in many property markets globally, which have the potential to significantly impact property values. These changes are being driven by a number of geo-political issues, as well as global inflationary pressures (leading to higher interest rates) and recent failures/stresses in banking systems, which have increased the potential for reduced credit availability. In addition, the world is facing post-pandemic behavioural adjustments.
In some geographical regions, these changes have been rapid and therefore might not yet be reflected, or easily identified, in recent market activity and transactional evidence. Therefore, valuers are reminded that they should reference the widest range of evidence available, including relevant market analysis and market sentiment leading to the potential for significant changes in value. RICS’ published guidance Comparable evidence in real estate valuation (1st edition) (rics.org) is an important reference with which valuers are reminded to familiarise themselves.
RICS Valuation – Global Standards 2022 (the ‘Red Book’) provides a valuation reporting framework and valuers are reminded to use their own skill and judgement to ensure valuations accurately reflect the market, in line with the requirements of the RICS Valuation – Global Standards 2022 (the 'Red Book').
Nick French, Chair of the RICS Global Valuation Standards Expert Working Group