Presentation on theme: "The Value of International Standards"— Presentation transcript:
1 The Value of International Standards Ben Elder BA BSc FRICS ACIArbRICS Global Director of ValuationCEM April 2015 London
2 Why is a vibrant property profession important to society? 60% of a nations wealth60% of all utilised materials used in Construction60% of energy used on heating and servicing buildings40% of carbon emissions emitted from Buildings10% of workforce employed in the sector
3 What is the value proposition Public benefitMarket efficiencyExternalitiesPareto optimality
5 Hernando De Soto – “The mystery of capital” Capital Creation–“Capital is not created by money; it is created by people whose property systems help them to cooperate and think about how they can get assets they accumulate to deploy additional production”
6 Hernando De Soto – “The mystery of capital” Fungiability“If standard descriptions of assets were not readily available, anyone who wanted to buy, rent or give credit against an asset would have to expend enormous resources comparing and evaluating it against other assets- which would also lack standard descriptions.”
8 IVSMarket ValueMarket value is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.
9 EUROPE - a magnet for capital from all areas Inward Investment strong from all regionsCROSS BORDER ACTIVITY: Year to Dec 2014€9.9 BEUROPE€12.8B€45.0 B€2.9 B€9.6B€0.8 BNORTH AMERICA€0.1B€1.3BAPACMIDDLE EAST & AFRICALATIN AMERICANET INVESTMENT FLOWS INTO EUROPENET FLOWS (€BILLIONS)NORTH AMERICA TO EUROPE€35.2SOUTH AMERICA TO EUROPE€0.5MEA TO EUROPE€9.5APAC TO EUROPE€9.9TOTAL GLOBAL NET FLOWS TO EUROPE€55.1EUROPE TO EUROPE€47.9C&W Global Offices*Deals $5M+; totals may not add due to rounding.Includes JV activity.Source: C&W Capital Markets, RCA
12 RICS Red Book Purpose“To provide an effective framework within the Rules of Conduct so that the users of valuation services can have confidence that the valuation of a RICS Member is consistent with IVSC internationally recognised standards”.
13 So - Where is the valuation world going? Thank you for listening.