Dubai backs property standard

The Dubai Government has become the first national government to announce its support for an International Property Measurement Standard (IPMS).

The IPMS, which is being developed by a coalition of 22 professional and not-for-profit organisations from around the world, including the International Monetary Fund, Royal Institution of Chartered Surveyors (RICS) and Building Owners and Managers Association International will address global inconsistencies in the way property is measured, leading to greater transparency and increased investor confidence.

The Dubai Government’s announcement further enhances their bid to host the World Expo in 2020, demonstrating their desire to connect real estate markets and implement international best practice standards by July 2014.

“We are proud of this achievement, which we see as being a quantum leap for the Dubai Land Department. Our involvement in this initiative supports our position in raising the benchmark for unifying property measurement standards in Dubai,” said Sultan Butti bin Mejren, Director-General, Dubai Land Department.

“The efforts to unify standards should benefit property owners and investors, as it will negate some of the issues and problems that can arise from differing standards used by real estate operators. It will support transparency and trust and will contribute to the convergence of global markets. It should also have a positive role in supporting Dubai's bid to host Expo 2020, in line with the Expo slogan; 'Connecting Minds, Creating the Future'.”

Currently, the way property assets - such as office, residential, retail and industrial - are measured can vary considerably from country to country.  With so many different methods in use, it makes it difficult for global investors and occupiers to accurately compare space.

With the implementation of a global property measurement standard, properties will be consistently measured; creating a more transparent marketplace, greater public trust, stronger investor confidence, and increased market stability. 

The standard will have a significant impact on the way property is measured, leading to improvements in valuation and financial reporting consistency across international markets.

“The International Property Measurement Standard Coalition is delighted that the Dubai Government has shown its support for this important initiative. 

"Like them, the IPMSC is firmly of the opinion that an internationally adopted measurement standard can only be a good thing for real estate markets worldwide. We hope that other governments will be quick to follow Dubai’s lead in committing themselves to this best practice approach,” said Ken Creighton, Director of Professional Standards, RICS.