Without a single standard of measurement in use worldwide, it is challenging for buyers and sellers to get a firm handle on overseas property markets. That situation will change shortly, as a new global standard will be implemented later this year.
Research conducted by Jones Lang LaSalle has found that different units of measurement can result in deviations of up to 24 per cent. The International Property Standards Coalition (IPSC), which has proposed the new system, wants to end this uncertainty and to ensure consistency in property measurements.
In parts of the Middle East, for example, floor measurements can currently include “hypothetical areas,” and in India floor measurements can take into account off-site car parks and common areas. In the United States, some commercial property is measured by the amount of usable air conditioned space in a building.
The international standard will be the first one to use a common language of universal measurement. It will create certainty for investors, lenders, agents, valuers, and occupiers alike. The property can be listed at a certain number of square feet, and it will be clear how the figure was arrived at.
A public consultation on the new standard has been launched. The three-month consultation will close in April, and sector practitioners and stakeholders are invited to comment.
Previous Post
Denver Named as Commercial Real Estate Market to Watch
