Alex Ionescu
General Manager
MD Properties
In the last couple of years, we have seen a lot of reforms in the real estate market. As brokers, you now need to graduate the courses held by the Ministry of Justice and get your diploma as a licensed real estate broker. It is a pleasure to see that regulatory processes are put into place, as this will only lead to competition between companies and in the end to a better quality of services provided to the end user.
Not only was the brokerage sector reformed, but also new regulation was put in place for non-Qatari ownership. The new resolution is determining the areas and places in which non-Qataris are allowed to own and use real estate and also granting of residency for owners of properties that is worth no less than QR 730,000 ($200,000) and for owners of properties worth no less than QR 3,650,000 ($1mn) will get the same benefits of permanent residents.
These measures will help grow; not only Qatar’s real estate market, but also will strengthen Qatar’s economic development.
In order to increase transactions from international investment funds or private investors, additional steps are required.
Whether we are talking about Institutional investors, large investment funds, or individual investors, all of them have the same thing in common, they are following international standards when they are making an investment decision. Thus, the next obvious and necessary step to make is the acceptance and implementation of international standards on Qatar’s Real Estate Market.
International Standards
An international standard provides high-level and universal rules. Professional institutions incorporate these high-level rules within their own guidance and all participate in the implementation of the shared international standard through their respective memberships.
Currently, the use of local standards around the world can cause confusion, particularly amongst international Currently, the use of local standards around the world can cause confusion, particularly amongst international investors; and whilst the report sets out a number of differences between emerging and established markets, it is clear that there is a shift towards greater consistency and demand for an international benchmark. See RICS Global property monitor report. When we are talking about international standards in real estate markets a few institutions or organizations are worth mentioning.
The International Property Measurement Standards Coalition (IPMSC) is a group of more than 80 professional and not-for-profit organizations from around the world, working together to develop and implement international standards for measuring property.
International Valuation Standards Council (IVSC) is a not-for-profit organization that acts as the global standard setter for the valuation profession, serving the public interest. The IVSC is a leader in the mission to raise standards of international valuation practice and is overseen by an independent board of global leaders.
The Royal Institution of Chartered Surveyors (RICS) is a 150+ years old globally recognized governing body, and everything they do is designed to have a positive impact on everything relating to both the man-made, built environments and the natural world. About IPMS (International Property Measurement Standards).
According to the IPMSC “As the real estate industry becomes increasingly global in nature, the need for international consistency in something as fundamental as property measurement becomes ever more apparent. Today, property measurement practices are highly localised and do not, therefore, offer the transparency and consistency required of a global marketplace. Research has shown the difference in the measurement of floor space can be up to 24 percent. IPMS is being developed now in response to mounting evidence which suggests current measurement practices are leading to confusion and uncertainty in property and financial markets”.
A few advantages you would probably have when using IPMS in your property portfolio are:
• IPMS provides a mechanism for benchmarking property measurement information across international markets.
• IPMS enable international occupiers, investors and owners to benchmark their property assets without needing to spend significant sums of money and resource calibrating space measurements.
• IPMS Provide greater transparency and consistency to all property users, wherever they are located.
About RICS Standards
RICS standards documents lay out the ethical-, conduct- and competence-related standards for the profession. RICS’ global and local review processes support this, including a yearly audit of data relating to all our professional assessments, assessor training, direct entry routes, vetting panels, nomination routes and qualification checks.
Working alongside RICS will provide a foundation to improve local land and properties, and to provide better places to live and work, which is undoubtedly a force for positive social impact.
RICS sector standards apply to specific disciplines within the profession: building surveying, construction, dispute resolution, land, real estate, and valuation.
Conclusion
Acceptance and implementation of International Standards might be a lengthy and slow process, but adopting standards that protect consumers and businesses and ensuring a high level of professionalism will enhance the market confidence, while providing greater protection for investors by ensuring they have reliable and accurate data to benchmark to.
*Source: RICS Global property monitor report
This article was published as part of the sixth edition of Property Finder Qatar’s Trends Report.
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