Launch of the Final Sector Paper on Operationalising the Property Value

RICS is proud to announce the publication of the final Sector Paper on Operationalising the Property Value, a critical milestone in advancing the real estate sector's alignment with Basel III regulatory requirements. This landmark document, developed in collaboration with the European Mortgage Federation-European Covered Bond Council (EMF-ECBC) and leading industry stakeholders, offers actionable insights into defining and implementing property valuation standards that address risk, sustainability, and regulatory compliance in real estate finance.

Building on Collaborative Expertise

This updated version builds upon the foundational work laid out in the initial sector paper launched in 2023, which brought together market experts, valuers, lenders, and regulators to tackle the challenges posed by the Basel III definition of property value. By synthesizing the insights of diverse stakeholders, the new paper provides a more refined framework to support the real estate sector in aligning valuation practices with regulatory requirements while addressing emerging market priorities such as sustainability and resilience.

Key Highlights

The Sector Paper on Operationalising the Property Value delivers a comprehensive framework, addressing:

• Clarification of the Basel III definition of property value: Translating regulatory terminology into practical valuation guidance.
• Risk mitigation through valuation methodologies: Offering tools to integrate market conditions and sustainability risks.
• Operational recommendations: Supporting lenders and valuers in implementing standardized practices across Europe.
• Sustainability considerations: Embedding energy efficiency and environmental risks into property value assessments, in alignment with the EU Green Deal and the Energy Performance of Buildings Directive (EPBD).

The Importance of Consistency

In a global economy marked by financial uncertainty, the paper underscores the importance of harmonized valuation standards across Europe to ensure consistency, transparency, and risk mitigation. By fostering a common language between financial institutions, regulators, and valuers, the sector paper aims to strengthen the resilience of the European financial system.

RICS’ Commitment to Driving Progress

RICS has been at the forefront of fostering dialogue and cooperation between key market players, advocating for standards that enhance market stability and transparency. This initiative reflects our ongoing commitment to empowering real estate professionals with the tools they need to navigate complex regulatory landscapes and meet the demands of a dynamic market.

The final Sector Paper on Operationalising the Property Value is now available here.

As we continue to shape the future of property valuation, RICS welcomes feedback, questions, and participation in ongoing discussions around this initiative. For more information or to get involved, please contact Senior EU Public Affairs Manager, Fausta Todhe at ftodhe@rics.org.

Together, we can operationalize property value to drive market confidence and sustainability.