Royal Institution of Chartered Surveyors (RICS), leading global body for setting standards in real estate and Indian real estate industry body NAREDCO have joined hands to promote internationally recognized standards, regulations and professionalism in the Indian real estate sector.
RICS and NAREDCO have signed a MoU, as per which the two organizations will jointly work towards adoption of International Property Measurement Standards (IPMS) for the benefit of Indian real estate industry. Adoption of IPMS for property development would help India reach its goal to be at par with developed nations in areas of uniform standards in areas such as carpet area, super area etc.
IPMS will create a single method for measuring property, bringing consistency to multiple standards that currently exist around the world. RICS has been in discussion with key government stakeholders to seek support of these international standards who remain supportive of the initiative.
´By adopting 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. And the MoU will help in delivery of effective advocacy and training to raise the level of knowledge and professional skills across the sector,´ said Louise Brooke-Smith, RICS President at Governing Council. International Property Measurement Standards (IPMS) are being developed and implemented by a growing international coalition of 62 leading standards organisations, representing professionals across the multi-trillion dollar property sector.
´The Indian real estate stakeholders have a number of important global residential measurement issues to address. 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. Through our network of members, NAREDCO will stress the need for adopting IPMS in the sector,´ said Naveen Raheja, chairman, NAREDCO.
RICS, along with 61 professional bodies from around the world, has called for setting uniform measurement standards for the residential sector globally (including India) to bring clarity on various aspects of property measurement such as super built up area, built up area and carpet area. Once the draft residential standards are formulated, RICS will seek formal endorsement from market regulator SEBI and Ministry of Housing. 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.
NAREDCO & RICS will organize joint seminars and conferences to develop Indian real estate markets with the help of standard international practices, which will include property measurement, building approvals, asset valuation, effective regulatory frameworks etc.
Shweta Kataria, Associate Director, RICS, Corporate Communications, (South Asia),
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