19
March 2015
One global standard for measurement of carpet
area for housing by end of year - RICS
~~ IPMS will create a single method for
measuring property, bringing consistency to multiple standards that currently
exist around the world~~
~~International
Property Measurement Standards (IPMS) is a global initiative of 62
international organizations including the World Bank and IMF~~
~~The
public draft of the residential standards will be ready by Q2 of 2015 with the
final standards being published globally by end of 2015~~
New Delhi: RICS,
along with 61 professional bodies from around the world, has called for setting
uniform measurement standards for residential sector globally (including India)
to bring clarity on measuring various aspects of property measurement such as
super built up area, built up area and carpet area.
International Property Measurement
Standards (IPMS) are being developed and implemented by a growing international
coalition of 62 leading standards organizations, representing professionals
across the multi-trillion dollar property sector.
RICS
has been in discussion with key government stakeholders to seek support of
these international standards who remain supportive of the initiative. Once the
draft residential standards are formulated, and it will seek formal endorsement
from market regulator SEBI and Ministry of Housing.
The Indian real estate
stakeholders have highlighted a number of important global residential
measurement issues to address the enormous growth required to address the needs
of their country.
Their concerns include
lack of consistent residential measurement standards, phantom measurements,
conflicts in off-plan measurement and consumer protection issues emanating from
such inconsistent measurement standards. Currently in India, over 7
different measurement systems exist. However similar problems exist in even
developed parts of the world such as United States and Middle East.
As a founding member of this coalition, RICS facilitated a two-day
meeting of Standards Setting Committee comprising 18 global technical experts
(including two from India) from different parts of the world, which was hosted
at the RICS School of Built Environment, Amity University, India.
The committee discussed
global measurement issues and agreed on common standards to bring greater
consistency and transparency. These international standards include
These globally agreed terms i.e. IPMS 1, 2 and 3 are aimed at
defining one common language for international real estate measurement, which
would allow global investors and occupiers to compare and invest in assets in a
consistent transparent manner.
“Government and
industry at large is supportive of these global measurement standards, just
like they have been for global valuation and global financial reporting
standards. By adoption of IPMS, Indian market has nothing to lose with a dual
reporting system of nationally prevailing terms (such as carpet area) and IPMS.
Instead, adoption of this international language of real estate measurement
will give confidence to global investors and boost foreign investment in Indian
property which in turn benefits Indian developers”. Mr. Sachin Sandhir, Global
Managing Director - Emerging Business, RICS said.
IPMS will be implemented
by all Coalition organisations including International Monetary Fund (IMF), through
their members, and property owners, investors and users will be encouraged to
use and request IPMS measurements of their properties.
“This issue has challenged the entire
property industry for a long time, with implications of trust, transparency and
consistency for tenants, landlords and owners alike. Through the vision
and collective efforts of the coalition and others, we now have IPMS, which
will help bring transparency and consistency for all. As an owner, landlord and tenant; we will
fully embrace IPMS across our global portfolio” Scott McMillan Division
Chief: Facilities, Real Estate and Capital Projects at International Monetary
Fund (IMF).
“IPMS looks to address current inconsistencies in the way property
is measured (that is, what is included in the measurement, not the units of
measurement) from one market to the next by introducing internationally
recognised ‘standards’ for measuring different types of property, including
offices, residential, retail and industrial proper,” Mr. Alexander Aronsohn FRICS, Director
Technical International Standards, RICS said.
The new standard will define which areas of a property are
included in a measurement and which areas are not. For example: stairwells and
washrooms; internal/external walls; common areas such as lobbies. IPMS will not
standardise ‘units’ of measurement (e.g. feet and metres).
IPMS for Office Buildings was launched last year and is already
endorsed by Governments in some parts of the world including Dubai. The IMF has
also announced its intention to re-measure its entire global portfolio using
IPMS.
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About RICS
RICS promotes and enforces the highest
professional qualifications and standards in the development and management of
land, real estate, construction and infrastructure. Our name promises the
consistent delivery of standards – bringing confidence to the markets we serve.
We have qualified close to 118,000 chartered professionals and any individual
or firm registered with RICS is subject to our quality assurance. With offices
covering the major political and financial centres of the world, our market
presence means we are ideally placed to influence policy and embed professional
standards. We work at a cross-governmental level, delivering international
standards that will support a safe and vibrant marketplace in land, real
estate, construction and infrastructure, for the benefit of all.
