JLL welcomes new standards body
Dubai, August 22, 2013
Jones Lang LaSalle has welcomed the formation of the International Property Measurement Standards Coalition (IPMSC), the first global standard for measuring property.
Nineteen leading property institutions from around the world came together in New York recently to create the organisation.
“This is good news for the Middle East and North Africa (Mena) real estate markets. For the first time investors will be able to use an internationally agreed standard methodology to measure property assets across the real estate market,” said Alan Robertson, CEO, Jones Lang LaSalle Middle East & North Africa.
“At the moment, real estate is measured differently between countries and even between different developers within the same country. This has resulted in the application of different measuring methods for calculating rentable or saleable areas. For example whether to include balconies within the saleable area of residential units or whether common areas such as corridors and washrooms should be included within the lettable area of an office building. This creates confusion and a lack of transparency in the market and consequently makes it difficult for both tenants and purchasers to make informed decisions,” he said.
“This is a problem across the Middle East where no common standards are used, making it difficult to compare between options on the same basis. This has a direct impact on transparency and what exactly investors are buying or what occupiers are leasing,” he said.
Research by Jones Lang LaSalle shows there is a clear correlation between transparency and investment in the real estate market. The adoption of a more structured approach to measuring buildings should therefore boost confidence and attract more investment into the regional real estate market, said Robertson.
“Jones Lang LaSalle MENA thoroughly endorses the new approach. We don’t believe there is a requirement to establish separate national codes but we do encourage Government authorities and local developers to implement any new international measurement standards that emerge from this initiative,” he added. –TradeArabia News Service