New valuation regulation for UAE real estate valuers
Dubai, June 16, 2014
Real estate valuation prepared by qualified valuers in the UAE will be formally regulated by the Royal Institution of Chartered Surveyors’ (RICS) professional body.
Following a drive by the Dubai Government and the RICS to improve valuation standards, all UAE members of RICS are required to adhere to the new levels of regulation called ‘Valuer Registration,’ said a statement.
It ensures that real estate valuation undertaken by their members meet the strictest international valuation standards (IVS), are auditable and transparent, and support improved confidence to valuation end users, such as banks, regulators, auditors, investors and other clients.
Ollie Saunders, managing director and head of real estate valuation at Deloitte, said: “One of the principle challenges in the market has been the quality of valuation reports. Too often we see reports which fail to set out a logical approach and reasoning to the valuation, and are often not based on market realities.
“Those reports can damage the property market, and undermine confidence in the real estate sector which is such a key part of the UAE economy. The new regulatory environment that now applies in the UAE will mean that standards can only go in the right direction - a RICS Registered Valuer will have to meet the same international standards that apply in the most mature real estate markets in the world. Where they don’t, the RICS will take action.”
Rob Jackson, RICS Middle East director, added: “RICS sees the introduction of Valuer Registration as a fundamental step to supporting the government in their drive for a transparent and sustainable property market through the adoption of international standards and best practice.
“It will also provide governments, lenders, agents and auditors access to transparent and regulated valuations which support their own internal risk management processes.” - TradeArabia News Service