‘Red Book' of property valuation standards now has an Indian edition
The Royal Institution of Chartered Surveyors (RICS) has launched the Indian edition of RICS Valuation Standards, or the ‘Red Book,' containing property valuation standards of global application along with India-specific guidance. The initiative has been localised for the Indian market.
“This denotes that a single set of globally consistent and locally relevant asset valuation standards are now available to RICS members and industry valuers at large, which can be easily understood and implemented,” said Sachin Sandhir, managing director and country head, RICS India.
The ‘Red Book' global standards align and comply with standards set by the International Valuation Standards (IVS) Council.
While the standards are based on broad principles, the ‘Red Book' goes a step forward and provides a practice framework for implementing them, by way of localised standards and guidance across countries for applications including valuations for bank lending, taxation purposes, and financial reporting.
The absence of a developed valuation profession, which remains ungoverned by any specific laws, authority or regulation, has hurt the Indian market.
The lack of transparency and established standards for valuation and accounting of land and property have all contributed to the challenges pertaining to valuation of real estate companies, land banks, and property assets. Over- or under-reporting of value, unprecedented price escalation, inaccurate compensation to land owners and so on have been common occurrences.
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