Valuation issues associated with the conflict in the Middle East

RICS has been engaging with valuation stakeholders located in the Middle East (excluding the Islamic Republic of Iran) in relation to the impact of the recent conflicts in the region.

RICS works with the valuation leaders from the region to monitor markets and key risks. Members have suggested that despite the conflicts, markets are functioning across the region although to a greater or lesser extent of normality depending on the jurisdiction and the asset class.

To assist valuers and their clients in the current challenging circumstances, RICS wish to highlight the following support materials that build on the obligations of RICS members to always comply with RICS Global Valuation Standards (Red Book) and to act with integrity, transparency and objectivity.

1. RICS Global Red Book: RICS Valuation – Global Standards (Red Book) – with a particular focus on VPS 6 Valuation Investigations and VPGA 10 Material Uncertainty.

2. Comparable evidence in real estate valuation – with a particular focus on the Sections titled Analysis of Comparable Evidence, and Dealing with a Shortage of Evidence.

3. Property Journal Article: Meeting challenge of accurate valuations in extreme conditions – https://ww3.rics.org/uk/en/journals/property-journal/real-estate-valuation-extreme-conditions.html

Neither RICS nor any member of the engagement group accepts any responsibility, duty or liability to any party in respect of the contents of their output. Any such responsibility, duty or liability is expressly disclaimed. RICS and the engagement group shall therefore not be held accountable, either collectively or individually, for any losses relating to or arising out of a valuer’s decision to insert, maintain or remove any declaration.