New valuation regulation is key to confidence in the UAE real estate sector and economy
16 June, 2014 - Following a drive by the Dubai Government and the Royal Institution of Chartered Surveyors (RICS) to improve valuation standards, all real estate valuation prepared by qualified valuers in the UAE are now formally regulated by their professional body. The RICS requires that all of their UAE members adhere to the new levels of regulation, called Valuer Registration (“VR”). This ensures that real estate valuations 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 that, “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.”
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