Real Estate Valuations in the Covid Era
04 December, 2020
By Maurizio Negri MRICS – Director of PRAXI Valuations – Global Independent Advisers for the November issue of Il Quotidiano Immobiliare magazine.
“Real Estate Valuations in the Covid Era” is the theme we proposed to two of the world’s leading experts in Real Estate valuation standards: Ben Elder, RICS Global Managing Director of Valuations, and Chris Grzesik, Chairman of TEGoVA.
The panel with Ben and Chris kicked off the Autumn 2020 Virtual Summit of the PRAXI Valuations network.
The topics addressed by the speakers were so extensive and in-depth, that it would require an entire book to cover all of the details. Nevertheless, we have captured the main themes and insights from the panel discussion.
The main topics of the discussion were:
- The fundamental role of valuation standards in order to guarantee investors reliable information during the current difficult period;
- The encouraging process of standards harmonization currently underway at the global level;
- The correct way for valuers to manage the limitations that COVID is imposing on their routine activities;
- An ongoing reflection on the true meaning of the Market Value concept (and the possible partial reformulation of its international definition);
- The medium to long term sustainability of value;
- The evolution of banking regulations at the European level (with insight on the use of “advanced statistical models” for the valuation of real estate collateral used as credit guarantees);
- The growing importance of energy efficiency in buildings and the impact on their Market Value.
The 40 participants, representing the 10 European real estate valuation companies that constitute the PRAXI Valuations network, unanimously concluded that the summit provided much food for thought.
Certainly, COVID is creating far more serious issues for humanity as a whole, compared to the impact felt by real estate valuers, but for valuers, this period represents a great challenge. To carry out our work diligently and above all, to apply our skills and experiences in an unexpected and rapidly changing real estate landscape, requires an abundance of professionalism and commitment.
The exchange of ideas and opinions, on occasions such as our recent Summit, is the “fuel” that drives the engine of our collective intelligence.