Q3 Global Performance Report 2016-17

Global Performance Report 2016-17

Q3

rics.org

Introduction

Context

Market adoption and demand for our standards is central to enhancing and promoting the value and long-term relevance of the profession. We recognise our profession’s central role in shaping and building the world around us for future generations, we take pride in the public interest role embedded in our Royal Charter, and we value the trust and confidence society places in us to set and enforce professional standards.

To achieve Governing Council’s vision, Management Board established seven long-term strategic goals for the 2016-19 business plan period:

We believe demand for our profession will continue to grow as the forecast pace of global urbanisation builds to 2050, coupled with an increasing and shifting population, climate change and rising pressures on food, water and energy supplies.

Professionals must lead the way in addressing these trends, working to consistent technical standards and upholding the highest standards of ethics. A willing acceptance of and adherence to independent self-regulation and scrutiny distinguishes RICS and the profession around the world.

RICS has played a central role in the development of international standards that bring greater confidence and consistency throughout the world. In this quarter, we launched the RICS professional statement on Conflicts of Interest and Confidentiality, which is already being adopted in the market.

We also concluded a further round of consultation on International Construction Measurement Standards (ICMS).

A particular highlight was the second Annual Summit of RICS’ World Built Environment Forum in Shanghai. Some 700 participants debated macro trends with leading international speakers and panellists. Subjects included the global economic outlook, against a background of historically high levels of populism and wealth disparity. Participants also highlighted the challenge of raising productivity to keep pace with a shrinking working-age population in the developed economies.

The Summit discussions centred on China’s One Belt, One Road (OBOR) initiative, widely seen as a revival the old Silk Road trade links. OBOR has the potential to greatly enhance the prospects of cities all along its route from China to the UK, and will

2

Q3 - Global Performance Report 2016-17

require infrastructure investment in excess of $1 trillion per year. Among the ideas discussed was the need for a new type of professional, known as a Chief Resilience Officer, with a mandate to ensure that cities take a coherent, holistic and responsible approach to growth. We are determined to harness these opportunities through adoption of RICS standards and growing demand for the services of RICS-qualified professionals.

Our most recent survey of the profession, in December 2016, received 5,448 responses. 89% of professional members said they were proud of their profession and 88% believe RICS acts responsibly.

78% said they understand what RICS is trying to achieve and 70% said they agree with our aims; both measures have increased since December 2015. We aim to enhance these results and ensure the profession understands and values being part of a global body helping to raise standards and influencing positive change for the benefit of future generations.

Strategic goals: • Our Performance – Agile: To improve our performance and agility to deliver globally against all our business plan objectives

• Our Standards – Recognised: To gain market recognition of RICS standards in the key economic and political centres of the world

• Our Leadership – Endorsed: To take a leadership role in the development, regulation and monitoring of standards

• Our Reputation – Enhanced: To be a role model as a responsible organisation in the eyes of all our stakeholders

This Q3 report is a summary of RICS’ worldwide performance against our objectives and strategic goals in the third quarter of the 2016/2017 financial year (February 2017–April 2017). It is available to all RICS professionals, employees and other key stakeholders.

• Our Role – Understood:

We welcome all comments on this report.

To grow the profession in strategically important markets

Paul Marcuse Chairman, RICS Management Board Sean Tompkins Chief Executive Officer, RICS e contactrics@rics.org t +44 (0)24 7686 8555

To ensure that the profession understands the direction of RICS and takes pride in its status

• Our Profession – Trusted:

• Our Product Range – Valued: To ensure the profession continues to develop through the provision of leadingedge training, knowledge and information

Key achievements this quarter RICS standards and qualifications continue to be widely adopted and demanded Governments: Welsh Government and the Canadian Public Services and Procurement Ministry, the largest property-holder in Canada’s federal government.

Employers and national bodies: General Council of Technical Architecture of Spain, Mace (India), Taipei Financial Centre Corporation, Bilfiger (Germany).

Dr Zhu Min, Former IMF Deputy Managing Director

Influence The International Monetary Fund’s (IMF) quarterly Global Housing Watch report now includes charts from RICS’ Global Commercial Property Survey.

Major end users: Blackrock (US), Codic International (Belgium), Deutsche Asset Management, Mantri (India), National House Building Council (UK).

The second Annual Summit of RICS’ World Built Environment Forum took place in Shanghai, with a focus on real estate, construction and infrastructure along the route of China’s One Belt One Road.

Adoption of RICS Red Book

We also welcomed experts to our annual Africa Summit to discuss land, infrastructure and workplace requirements across the continent.

The Summit began with a review of the trends affecting the sector and how governments and industry are driving growth.

Bayern LB, Germany’s 8th largest financial institution, Belgian major bank Belfius (for non-residential valuations over €1 million), Bank of the British Virgin Islands, Swedish Real Estate company Humlegården, Winland Group (China).

“Multilateral co-operation is key to building sustainable infrastructure and successful cities in times of global uncertainty.”

RICS’ Dispute Resolution Service (DRS) is leading a coalition comprising UK professional bodies to raise awareness of the value of conflict avoidance and early intervention techniques. The ultimate goal is to help change the culture of the UK’s approach to infrastructure and construction projects away from combative and dispute-heavy business relationships to a more collaborative partnership which brings projects to completion on time and within budget.

Standards we are developing

We connected with professionals from over 60 countries at MIPIM, the world’s largest annual gathering for the real estate industry. Our priority themes for MIPIM this year were professionalism, facility management and property technology.

At MIPIM in France, we launched the RICS professional statement on Conflicts of Interest and Confidentiality, which M&G Investments has already confirmed they will adopt; M&G has £26.3 billion of assets under management globally. We also concluded a second round of consultation on the draft International Construction Measurement Standard (ICMS); we will now develop the standard further with our coalition partners. Our vision of an International Land Measurement Standard (ILMS) was welcomed at the World Bank Conference on Land and Poverty in Washington. Around 1,500 land professionals discussed ILMS’ role in land transfer, acquisitions, land valuation, taxation, affordable housing, mining and mineral rights, and more.

Q3 - Global Performance Report 2016-17

3

Our performance in numbers

65,874

receive RICS News globally

79,638

followers on Twitter

77,360

1,100 views of the Facebook Live video stream from our Building Surveying Conference.

people in the global LinkedIn group and 55,466 followers

22,122

fans on Facebook

3,619

followers on Instagram

2,885

subscribers on YouTube

4

Q3 - Global Performance Report 2016-17

The Annual Summit of RICS’ World Built Environment Forum attracted 700 participants and 53 speakers from 73 cities in 19 countries.

We reached a social media audience of 1.5 million.

3,158

new professionals were awarded RICS designations in the financial year to date

106,099

RICS-qualified professionals worldwide

14,000 ÂŁ675k operating surplus at March 2017

51%

of newly qualified professionals are based outside the UK and Ireland, notably mainland Europe (14%), China (11%), East Asia (6%) and South Asia (6%)

candidates (in 88 countries) now using our online assessment resource to prepare for their professional assessments

97%

of service complaints resolved within five days

100%

resolved within 20 days

Q3 - Global Performance Report 2016-17

5

Survey of the profession 5,448 professionals took part in the December 2016 survey

71%

are satisfied with RICS, their professional body

78%

understand what RICS is trying to do and achieve

69% December 2015

77% December 2015

70%

89% December 2015

83% December 2015

88%

88% December 2015

6

72%

73% December 2015

We will focus on: agree RICS increases status and recognition of professional standards by governments and markets

agree with what RICS is trying to do and achieve

69% December 2015

83%

89%

are proud to be part of the profession

agree RICS effectively regulates the profession to protect the public and the profession

believe RICS acts responsibly as an organisation

Q3 - Global Performance Report 2016-17

• Putting the profession ahead of the competition with leading edge training, knowledge and information • Explaining clearly the value of what we are planning to do and achieve

80%

79% December 2015

79%

79% December 2015

are highly likely to renew their professional membership

would be likely to recommend RICS professional membership

• Establishing regulation worldwide that provides competitive advantage for the profession • Agreeing international standards in collaboration with partners across our markets • Ensuring end users demand our standards and qualifications • Attracting the brightest and best talent into the profession

Confidence through professional standards

We accredit 125,000 professionals and any individual or firm registered with RICS is subject to our quality assurance. Their expertise covers property, asset valuation and real estate management; the costing and leadership of construction projects; the development of infrastructure; and the management of natural resources, such as mining, farms and woodland. From environmental assessments and building controls to negotiating land rights in an emerging economy; if our professionals are involved the same standards and ethics apply.

We believe that standards underpin effective markets. With up to seventy per cent of the world’s wealth bound up in land and real estate, our sector is vital to economic development, helping to support stable, sustainable investment and growth around the globe.

With offices covering the major political and financial centres of the world, our market presence means we are ideally placed to influence policy and embed professional standards.

We work at a cross-governmental level, delivering international standards that will support a safe and vibrant marketplace in land, real estate, construction and infrastructure, for the benefit of all.

We are proud of our reputation and we guard it fiercely, so clients who work with an RICS professional can have confidence in the quality and ethics of the services they receive.

United Kingdom RICS HQ

Ireland

Europe

Middle East

Africa

Americas

South America

Oceania

East Asia

China (Shanghai)

China (Beijing)

Japan

ASEAN

South Asia

Parliament Square, London SW1P 3AD United Kingdom t +44 (0)24 7686 8555 f +44 (0)20 7334 3811 contactrics@rics.org Media enquiries pressoffice@rics.org

Rua Maranhão, 584 – cj 104, São Paulo – SP, Brasil t +55 11 2925 0068 ricsbrasil@rics.org

#27-16, International Plaza, 10 Anson Road, Singapore 079903 t +65 6812 8188 f +65 6221 9269 ricssingapore@rics.org

38 Merrion Square, Dublin 2, Ireland t +353 1 644 5500 f +353 1 661 1797 ricsireland@rics.org

Suite 1, Level 9, 1 Castlereagh Street, Sydney NSW 2000. Australia t +61 2 9216 2333 f +61 2 9232 5591 oceania@rics.org

48 & 49 Centrum Plaza, Sector Road, Sector 53, Gurgaon – 122002, India t +91 124 459 5400 f +91 124 459 5402 ricsindia@rics.org

(excluding UK and Ireland) Rue Ducale 67, 1000 Brussels, Belgium t +32 2 733 10 19 f +32 2 742 97 48 ricseurope@rics.org

3707 Hopewell Centre, 183 Queen’s Road East Wanchai, Hong Kong t +852 2537 7117 f +852 2537 2756 ricseastasia@rics.org

Office B303, The Design House, Sufouh Gardens, Dubai, UAE PO Box 502986 t +971 4 446 2808 ricsmena@rics.org Room 2006, Garden Square, 968 Beijing Road West, Shanghai, China t +86 21 5243 3090 f +86 21 5243 3091 ricschina@rics.org

PO Box 3400, Witkoppen 2068, South Africa t +27 11 467 2857 f +27 86 514 0655 ricsafrica@rics.org

Room 2507-2508B, Jing Guang Centre, No.1 Hu Jia Lou Road, Chaoyang District Beijing 100020, China t +86 10 6597 8586 f +86 10 6581 0021 ricschina@rics.org

One Grand Central Place, 60 East 42nd Street, Suite #542, New York 10165 – 2811, USA t +1 212 847 7400 f +1 212 847 7401 ricsamericas@rics.org

Level 14 Hibiya Central Building, 1-2-9 Nishi Shimbashi Minato-Ku, Tokyo 105-0003, Japan t +81 3 5532 8813 f +81 3 5532 8814 ricsjapan@rics.org

GLOBAL/MAY 2017/DML/22258/QUARTERLY REPORT

RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards – bringing confidence to the markets we serve.