New Delhi: An expert committee has been set up for developing a global standard for measuring property to address the problem of inconsistent methodology adopted across the world for measurement of real estate.
"This week the International Property Measurement Standards Coalition (IPMSC) selected 19 real estate experts from around the world to join its Standards Setting Committee to develop a global standard for measuring property," Royal Institution of Chartered Surveyors (RICS) said in a statement.
RICS, the world’s leading standards setting body within the built environment, along with 15 other world’s prominent property organisations came together in the month of May at the World Bank, Washington DC, to address the need to create a universal method of measuring property.
"The Standards Setting Committee will start work on the drafting of the new methodology immediately and aims to have a draft ready for widespread consultation in the early part of 2014," the statement said.
"Currently, the way property assets - such as office, residential, retail and industrial - are measured can vary considerably from country to country. With so many different methods in use, it makes it difficult for global investors and occupiers to accurately compare space," the statement said.
In India, the concept of super areas have been used to include outdoor swimming pools, stairs, common areas such as pavements, while in parts of the Middle East floor areas can include the hypothetical maximum number of floors that could be built on the existing foundations.
In Australia, measurements have included outdoor parking spaces, even when they are not physically adjoined to the property itself.
With the implementation of a global property measurement standard, properties will be consistently measured; creating a more transparent marketplace, greater public trust, stronger investor confidence, and increased market stability.
The standard will have a significant impact on the way property is measured, leading to improvements in valuation and financial reporting consistency across international markets.
"Property is a global business for international investors, corporate occupiers and their advisers, but floor space measuring practices vary from country to country and even between markets in the same country," said Max Crofts, Chair, Standard Setting Committee.
PTI
