Business

Certainty in property markets more important than ever

Modern Architecture
Modern Architecture Modern Architecture

WE'RE definitely in uncertain times, and more than ever it's essential bodies like ours provide certainty where we possibly can. The UK may have voted to leave the EU, but it is very much at the heart of a global initiative to bring greater uniformity to property markets.

International standards that are recognised throughout the world are being developed to deal with a long-standing variation between different countries in how property is measured.

Earlier this year, the new RICS Professional Statement for Property Measurement on offices became mandatory for surveyors. This was part of the implementation of the International Property Measurement Standard (IPMS). We collaborated with more than 70 international organisations to develop the brand new standard that complies with global benchmarks.

In short, this new standard provides a uniform, transparent and consistent method to measure commercial property across the world. And this is probably more important than you might think.

Variations in measurement has meant that a 10,000 sq ft office building in one part of the world could be over 13,000 sq ft in another. Or a 2,000 sq ft house in one country could be hundreds of square feet larger somewhere else. This may seem hard to believe, but it has been the reality of the international property market for a long time, where professionals in different countries have been measuring buildings in different ways.

Imagine how confusing that could be in an increasingly international business world?

The IPMS is intended to address this long-standing problem of inconsistency in the way buildings are measured. It means that, for the first time, professionals and their clients can benefit from a common method for measurement, wherever they are. It is replacing dozens of existing standards in use regarding office measurement.

There has been some debate about what impact, if any, the UK’s vote to leave the EU will have on Northern Ireland’s inward investment goals. Either way, what is for sure is that we need to do all that we can to provide clarity and certainty for investors. Adopting IPMS is an important part of being a welcoming location for international investment.

A second standard for the residential market is intended to do bring the same international uniformity when it comes to houses, apartments and other residential buildings.

The new I'PMS: Residential Buildings' is now open for review. And it is important that Northern Ireland property professionals take note of it as well.

RICS was a founding member of the coalition which developed IPMS, alongside other standard-setting bodies. Implemented by professionals and professional organisations throughout the world, the standard will ensure a single, coherent methodology.

We believe it is it is vital that property professionals in Northern Ireland engage with the IPMS residential process as well at the earliest opportunity to review the standard and provide their feedback.

'IPMS: Office Buildings' provides a uniform, transparent and consistent method to measure commercial property across the world. 'IPMS: Residential Buildings' will have the same benefits, especially for consumers.

RICS has some 4,000 members in Northern Ireland, employed in the land, property and construction markets and in associated environmental issues. Its members are employed across private practice, regional and local government, public agencies, academic institutions, business organisations and non-governmental organisations. RICS has a Royal Charter which requires it to act in the public interest.

:: Ben Collins is director of the Royal Institution of Chartered Surveyors (RICS) in Northern Ireland, which represents 4,000 cross-sectoral members comprising of chartered and associate surveyors, trainees and students.