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A global perspective
Real estate property valuation practice is very unique profession. In principle it is existing due to three main reasons related to real estate market inefficiency:
Due to evolution of technology and communication platforms, this practice is however rapidly changing and so is role of a property valuer.
In JLL we are capturing the latest trends and we are actively preparing for the new era, which will require different approach to property valuation.
We have realised, that it is necessary to prepare STEAMlined process, which will capture all aspects of property valuation, from initial instruction definition and ensuring independency, though inspection and modelling of cash flows up to automated reporting, though single enclosed and interconnected system.
The backbone of the system is new way of complex market data storing, which allows capturing whole new potential of all the combined knowledge we have about the property market. Knowledge that is up to date, as well as allows reference to past developments of the market.
It has been summarised in complex RICS paper issued already almost a year ago – FUTURE OF VALUATIONS which identified three main issues that shape property valuations on a global level:
All of the above contribute to higher agility of valuers and shorter time frames necessary to provide clients with more transparent reports and higher quality of underlying justifications.
At the same time, one requirement of property valuation profession remains unchanged despite the changing times. It is the need to be independent and objective. Without this the trust between the client and the valuer cannot be established. One of the most important characteristics of property valuations is that the clients can rely on these.
One of the new roles that valuers will be required to undertake is a role of an advisor next to providing just a market value figure. Although it is still needed to define this role more clearly, especially from liability point of view, as in this case, because the future outlook is given next to the present valuation.
It is however true, that as long as the above mentioned market inefficiencies remain, there will be always a need for property valuer. But as other industries have changed with the entry of, for example UBER or Airbnb, so can the whole real estate investment and trading change within a short period of time. This would have an impact also on valuers role. At the same time, this would require that many other roles of property market participants are modified.
Head of Valuations