Europe Digest 2017 by RICS

Europe digest 2017

rics.org/europe

Europe Digest 2017

Our vision page 1

Our message page 2

� Where we are � Breakdown � Next generation

Looking back

Looking forward

page 4

page 8

Who’s who in Europe page 18

� Managing reputational risk � Inspiring pride in the profession � Leading global solutions for change � Redefining facilities management � Mapping the future of valuation

Our vision

Through our credential and our professional standards we will create confidence in markets and be known for effecting positive change in the built and natural environments

Europe Digest 2017 | 1

Our message

Facing the future with confidence From the Chair of the Europe Board and Managing Director for Europe, Russia & CIS

Welcome to our 2017 Europe Digest, which aims to give you a flavour of both our past and future activities. As we approach the end of a productive year, our achievements reflect the work we have undertaken in repositioning RICS as a truly global 21st century professional body.

Retaining the best and inspiring the next generation Our 8,198 RICS professionals are active in more than 40 countries within Europe, Russia and CIS, representing many of the disciplines integral to the built environment. We continue to inspire the next generation of RICS professionals, with 6,912 students currently following our 64 accredited courses in the region. New high-level personalities joined the Europe board. They will work alongside Chair Tina Paillet FRICS, appointed in October 2017.

2 | Our message

Proud to be RICS Whilst our retention rate has dipped slightly from 95% to 94%, our bi-annual surveys have reported improvements in our level of advocacy, suggesting there is a good foundation to further grow the profession in the region. RICS is its professionals, and we take their views on RICS and how it operates very seriously. When asked to respond to the question ‘how do you feel about RICS?’, we were pleased to note that most our professionals in Europe reported that they felt ‘very proud’ (94%) of their association with RICS and agreed with the direction we are taking as an organisation (91%). Positive perceptions To gain further insight into how RICS is perceived beyond the boundaries of its own professionals, a survey of external stakeholders was conducted in June 2017. The response was positive, and confirmed

that RICS is the leading body promoting the profession, strongly associated with providing expertise, training, regulation and qualifications. In becoming a global 21st century professional body, RICS is pursuing its mission to bring more qualified professionals and the standards they work to into the markets, continuing to fulfil our near 150-year Charter obligation to ‘promote the public good’. A name that endures As we reach our 150th anniversary, we are again at a time of major global change and challenge, one in which the property sector will have a significant role to play for future generations. The built environment represents 50% of global wealth and 7% of the world’s jobs. Our profession bears a significant weight on its shoulders, and this responsibility is a great opportunity to reaffirm the importance and value of our sector in society. RICS plays a leading role in ensuring that our professionals develop the competencies and skills they need to face the future with confidence. Furthermore, it is RICS’ desire

Tina Paillet FRICS Chair, Europe Board

to foster collaboration with those individuals and organisations who want to help ensure our sector is fit for future generations. Together we are preparing the ground for changes that lie ahead, such as the rise of PropTech, changing workplaces, and the growing emphasis on environmental and wellness initiatives. Forum for the future We would like to send out an open invitation to both RICS professionals and others active in the sector to take part in the World Built Environment Forum. The forum is an opportunity to participate in a leading and active digital community where industry, politicians and academics involved in the global property sector discuss the big challenges we face going forward. These debates will culminate in a global summit, to be held in London in April 2018. As our 150 years of history have shown, our profession is resilient enough to withstand whatever the future may bring. However, we are reliant on the strength and input of our professionals. Here’s to another 150 years of challenge and change.

Maarten Vermeulen FRICS Managing Director for Europe, Russia & CIS

Europe Digest 2017 | 3

Looking back

Where we are Nordics and Baltics

448 19

Netherlands

873 167 66

Benelux

RICS professionnals worldwide

290 25

(end July 2017)

Switzerland

393 UK and Ireland : 76,851

Asia Pacific : 15,073

Europe, Russia and CIS : 8,198 Middle East and Africa : 3,941 Americas : 2,844

Professionals : 8,198 Candidates : 1,448 Regulated firms : 437

(As of end of July 2017 in Europe) 4 | Looking back

Portugal

Spain

514

France

1,371 397 65

CEE

Germany

Austria

Greece

1,695

269

168

536

379

Russia and CIS

320

Italy

Poland

Cyprus

470

332

246

21 4

Europe Digest 2017 | 5

Breakdown

Valuation Commercial Property

Top ten disciplines in Europe

Property Finance and Investment Quantity Surveying Management Consultancy Project Management Planning and Development Residential Pratice Building Surveying Facilities Management

Qualified professionals by age

Qualified professionals by gender

Gen Y 1980-95 : 1,443

Male : 81%

Gen X 1965-1979 : 4,524

Female : 19%

Baby Boomers 1946-1964 : 1,848 Veterans < 1946 : 216 Others : 167

(Qualified professionals in Europe, as of end July 2017)

6 | Looking back

Next generation

755

22%

professionals awarded RICS qualification

824

candidates enrolled safeguarding the future of the profession

Gender diversity improved to 22% for candidates and newly qualified

55%

6,912 students following one of the

Across RICS, 55% of the new qualified professionals are based outside the UK

accredited courses in Europe

Europe Digest 2017 | 7

Looking forward

Managing reputational risk

At a time when our sector is already wrestling with unprecedented risks, disruption and competing priorities, safeguarding the standards RICS professionals uphold is vital in building and maintaining trust with our clients, markets and consumers. Trust as a cornerstone In 2017, RICS carried out research on the role of trust in professionalism. The purpose was to ensure we remain fully informed about the potential risks facing the status of RICS and its professionals, thus asserting our relevance and retaining the confidence of the market and the public in what we do. To identify potential sources of reputational risk to which RICS and the profession are exposed, feedback was gathered from professionals, clients and the public. This was supplemented by a global quantitative survey and focus groups run by staff worldwide.

8 | Looking forward

The research reported that RICS professionals have a positive reputation across markets for following professional standards. It also found a number of potential risk areas (see graphic illustration) facing RICS and its professionals: conduct, service standards, competence and consumer protection. Risks faced by RICS professionals � Commercial pressures: ever tighter time and cost pressures can create an environment where cutting corners is sometimes seen as the only way to get the job done. � Multidisciplinary global consultancy practices: the rise of the ‘one-stopshop’ approach brings with it a tougher commercial environment. Conflicts of interest also pose a risk if the appropriate ethical information barriers are not in place. � Competency limits: as careers develop and roles change, it is vital to ensure that RICS professionals have the right skills for the job in hand. Understanding personal limits of competence is essential, as is recognising when it is appropriate to send junior staff and when more supervision may be required. � Overreliance on new technology: while technological advances can be viewed as a boost for some roles/tasks, there remains a need for qualified professional judgement.

RICS rules of conduct

Conduct

Professional and ethical standards Conflicts of interest

Service standards

Competence

Complaints handling and redress

Capability and changing competencies

Terms of engagement

Continuing Professional Development (CPD)

Risks faced by RICS as a professional body � Global expansion: as RICS continues to grow internationally, it is important to ensure standards are both globally and locally relevant. � Continuing Professional Development (CPD): CPD requirements need to be clearly understood and monitored to ensure RICS professionals have the upto-date knowledge and skills required to maintain and improve practice.

Consumer protection Money laundering Professional Indemnity Insurance (PII) Client money

Moving forward To address the priority issues and opportunities identified from the research, RICS is developing a suite of professional statements which include mandatory requirements. ‘Conflicts of Interest, Global, 1st edition’ was launched in March 2017 and enters into force in January 2018. Subsequent publications will look at conduct and ethics, competence, indemnity insurance, data handling and cybercrime, anti-money laundering, anti-bribery and corruption and the handling of client money. In Europe, we will focus on the most pertinent issues for our region.

Europe Digest 2017 | 9

Looking forward

Inspiring pride in the profession

In 2018, RICS will celebrate a major achievement: shaping the built environment since 1868. As we approach 150, our aim is not to look back, but to look forward and use past success to position ourselves as a world-class 21st century professional body, able to adapt without losing its raison-d’être.

10 | Looking forward

An accomplished history Two campaigns have been launched for professionals and the wider industry to mark the anniversary. The first – known as ‘Pride in The Profession: Celebrating 150 years of surveying successes’ – calls upon the profession to embrace this look back into its history by nominating local surveyors and surveying achievements – both past and present. It looks at the positive impact and tangible contribution they have made to society and demonstrates how varied and rewarding a career in surveying can be. Highlights of the campaign so far include the first female chartered surveyor, Irene Barclay FRICS, a true champion of social housing reform in the 20th century; Derek Muldowney MRICS, the saviour of the Daytona 500, and the late Mark Clift FRICS, whose leadership of the Cyberport project gave Hong Kong a leading tech economy.

Smaller, carefully thought out initiatives that have had a huge impact on people’s lives, both locally or on a wider scale are also being recognised. These include Roberto Bandieri MRICS who offered his expertise to sustain agriculture and the reconstruction of local economy in the Italian village of Amatrice, strongly hit by the earthquake which caused the death of 297 people in August 2016. Submissions can be made at rics.org/150 or via email to 150@rics.org. From January onwards and throughout 2018, the most outstanding examples will be showcased along with the name of the nominator both online and at the exhibition of 150 achievements at RICS headquarters in London.

Shaping the future As a global thought leader, RICS has a role to play in finding solutions to the most pressing issues facing the world’s rapidly expanding cities. Global urban populations are predicted to grow by over 2.5bn by 2050, while rapid urbanisation presents one of the defining challenges of our time, putting unprecedented levels of strain on property, construction, infrastructure and land use. As experts in shaping the built environment, it is natural that RICS and its professionals are taking the lead in tackling these issues. A global competition launched by RICS will challenge students in the fields of built environment, architecture, design and engineering (amongst others) to find innovative solutions to the issues facing many global cities and identified by RICS’ regional teams. Entries will be judged by some of the leading names from our industry. A global shortlist will be presented around mid-June, in time for RICS’ 150th birthday, and the overall winner will be announced at the inauguration of the RICS President for 2018 later in the year. From January 2018, professionals are invited to mentor shortlisted entrants, a great opportunity to help shape future talent. To register your interest as a candidate or mentor, send an email to 150@rics.org.

Europe Digest 2017 | 11

Globalisation and political turmoil have given rise to new and complex challenges for industry leaders. RICS and the profession have a role to play as influencers and collaborators; linking ideas and innovative thinking, shaping policy and delivering tangible solutions to some of the most pressing issues facing our society. Time for concerted action The Futures programme, launched by RICS to explore the implications of key drivers for change to 2030, acknowledged that complex societal issues such as urbanisation, resource depletion and climate change require creative ideas and strategic leadership.

12 | Looking forward

In response, RICS created the World Built Environment Forum (WBEF), an international network of professionals combining knowledge, skills and resources to shape the environment our populations need. It takes inspiration from the World Economic Forum, with which we hope to partner on events and themes where appropriate. As well as offering a permanent online network for influential thinking and ideas, once a year the WBEF also hosts a summit for up to 1000 attendees that features: ďż˝ high quality speakers from global bodies, governments, markets and media ďż˝ top thought-leadership partners from the sector and related disciplines ďż˝ opportunities for networking and business development.

Collaborative convener The Forum sets the standard for dialogue and cooperation that is vital for our sector. We bring together the right people, skills and knowledge to effect real change through: � thought leadership: focusing on the big picture, medium- to long-term and playing to the profession’s strengths as multifaceted, strategic and universal � problem solving: turning ideas, research, collective knowledge and expertise into practical solutions, and ensuring the profession is equipped to make best use of these � influence: repositioning the profession as a wide-ranging body of prominent and well-informed experts. Improving our world through innovation The yearly WBEF summit offers a meeting point for thought leaders to discuss headon the most pressing challenges facing civilisation and identify practical solutions. Previously held in Washington and Shanghai, the next summit will be held in London on 23-24 April 2018. Developed in collaboration with renowned multinational partners, this two-day event will focus on the commercial approaches needed to harness the enormous potential of the 21st century’s people and places. Attend the summit to be part of the debate:

� Service providers: strategic perspectives and market insight to help you succeed in growth markets, and demonstrate your market relevance to those who are shaping the cities of the future. � Corporate occupiers: gain valuable insight into trends that will shape the urban environment, and potential solutions that enhance occupiers’ confidence in markets. � Government and regulatory authorities: understand the market forces that drive investment and build confidence in financing, constructing and maintaining public infrastructure; make optimum use of available resources, and learn which solutions offer the best long-term viability for cities to attract employers and meets citizens’ needs. � Financial bodies: understand the interconnected risks in the built environment to enable responsible investment and maximum impact from available resources; identify potential solutions to ensure that projects are investable and attractive. Register your interest at rics.org/wbef

Europe Digest 2017 | 13

Looking forward

Redefining facilities management

As buildings, infrastructure and working practices become ever more complex, there is increasing acknowledgement that facilities management (FM) has a strategic role to play in the continuing success of business and organisations throughout the world. RICS-IFMA collaboration In April 2017, RICS announced a landmark alliance with the International Facility Management Association (IFMA) which promises to transform the profession.

14 | Looking forward

The partnership will advance standards and professionalism in FM, driving greater consistency and increasing the effectiveness of real estate asset management worldwide. What does this mean for RICS? The strengths of IFMA with its 24,000 members operating in the FM sector and portfolio of conferences, knowledge and resources provide a global value proposition that complements the RICS offer in the wider built environment: ďż˝ equipping FM professionals with comprehensive knowledge and a onestop shop for professional development ďż˝ raising the profile of FM as an aspirational career choice and creating an employment market for FM experts.

Promoting a common approach to standards Collaboration on FM standards development will ensure all practitioners and their clients benefit from world-leading professional standards and guidance. This is a major advancement for a profession which is increasingly seen at the very heart of any business’ corporate strategy. It will improve consistency and transparency in the property information available and enhance the work of those working in FM. One qualification - ‘Defining FM Excellence’ People of all educational backgrounds, skills, work experience and career goals now have access to a single suite of RICS-IFMA qualifications. These are recognised and respected globally, opening up the route to RICS chartered status (MRICS or AssocRICS) and making it more accessible. Find out more at rics.org/ FMcredentials.

Knowledge and training By pooling our expertise, both organisations will produce world-class thought leadership, generating research, training and other industry-relevant content that supports the development of professionals and ultimately grows the FM sector. These resources will be made available on a new online knowledge-sharing platform available to IFMA members and RICS qualified professionals. The RICS-IFMA Online FM Academy offers the full spectrum of professional development for every career stage. View all courses at fm.training. IFMA-RICS World Workplace Europe A portfolio of joint conferences and events will provide networking and continuing professional development opportunities for FM professionals and platforms for the delivery of thought leadership. RICS’ body of knowledge within the built environment sector will benefit from joining with IFMA’s longstanding and well-respected FM conference and exposition, the World Workplace. IFMA can also tap into RICS’ vast experience and international network of professionals globally, expanding its reach.

Europe Digest 2017 | 15

Looking forward

Mapping the future of valuation

Market efficiency requires consistency, transparency and comparability. RICS â&#x20AC;&#x2DC;Red Bookâ&#x20AC;&#x2122; valuation standards, incorporating International Valuation Standards (IVS), are the backbone of the valuation profession.

16 | Looking forward

The Red Book The new edition of the Red Book took effect from 1 July 2017, the same date as IVS 2017. Recognised and adopted in most parts of the world, application of the Red Book is mandatory for all RICS professionals and regulated firms. Its framework for the consistent application of IVS means that valuations according to the Red Book are comparable across international markets, something that no other valuation standard provides at the same level. This makes it increasingly respected by the market for enhancing the transparency and reliability of valuations.

Standard of reference In recent years, the importance of reliable valuation standards such as those provided by RICS have been put under the spotlight. Notable acknowledgements include: � In 2017, recognition by the European Central Bank of RICS standards in its guidance on non-performing loans (NPLs). The bank requires adherence to either the RICS Red Book or European Valuation Standards (EVS) with neither having precedence over the other � Acknowledgement of IVS and valuation according to the Red Book by a significant number of central banks in developing markets � The EU Mortgage Credit Directive, which was the first to advise Member States to develop reliable property valuation standards. These must be in line with IVS, including the Red Book. The mark of valuation expertise Standards are nothing without rigorous implementation and regulation. RICS Valuer Registration (VR), which monitors compliance with RICS Valuation Standards, is currently mandatory in 10 countries across Europe, and valuation users increasingly understand the benefits of employing an RICS Registered Valuer. Registered Valuers in the Netherlands are responsible for most investor valuations in the Dutch market. In France, the Autorités des Marchés Financiers (AMF) as well as the Autorité de Contrôle Prudentiel et de Résolution (ACPR) recognise the

qualification and use of the Red Book for valuations. The certification is often seen in Spain as a requirement for tenders, proving that the market appreciates the security that RICS regulation brings. From 1 January 2018, VR will also become mandatory for all for RICS qualified valuers in Germany. Future-proofing the role of the valuer in a fast-changing world Dialogue with the valuation community and clients allows RICS to address the key concerns of the real estate sector. A new Insight paper, ‘The future of valuations’ will examine the outlook for valuation professionals. Experts in the sector discussed various topics including automated valuation, long-term value, artificial intelligence, big data, blockchain and sustainability, and assessed their potential impact on valuations and the valuation profession. The paper is a follow up to the 2015 RICS Futures Report, which provided a vision of the real estate sector by 2030. In the report, valuation was shown to be one of the professions most likely to be affected by technology. ‘The future of valuations’ will be published in late 2017 with the support of the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) and the European Mortgage Federation-European Covered Bond Council (EMF-ECBC) and include recommendations on client expectations and skillset. It is intended to be the starting point for debate in a time of rapid change.

Europe Digest 2017 | 17

Who’s who in Europe

Who’s who Meet our in Europe boards

Europe Board The World Regional Board for Europe, Russia and CIS is made up of nine representatives from the European built environment sector. Our new Europe Board was confirmed in early October 2017. Tina Paillet FRICS, Chair of the Europe Board | France Eduardo Fernandez-Cuesta FRICS | Spain Josiane Richardson MRICS | Gibraltar Seweryna Afanasjew MRICS | Poland Pascal Plotegher FRICS | France Silvio Estienne MRICS | France Marcel de Boer MRICS | The Netherlands Nikolaus Holzinger MRICS | Germany Maarten Vermeulen FRICS | The Netherlands

18 | Who’s who in Europe

Continental Europe Educational Standards Board The Continental Europe Educational Standards Board (CESB) maintains the standard of RICS accredited courses and professional assessment. Ludovic Charpentier FRICS, Chair of the CESB | France Prof. Dr. Tom Berkhout MRICS | The Netherlands Dr. Juerg R. Bernet FRICS | Switzerland David Duffy FRICS | Switzerland Prof. Dr. Olga Gavrilina | Russia Ralf Klann FRICS | Germany Marzia Morena FRICS | Italy Adamantia Phoca MRICS | Greece Prof. Dr. Eric Pichet FRICS | France Howard Pierce MRICS | Spain Prof. Dr. Verena Rock MRICS | Germany Pol Tansens MRICS | Belgium Carola Arboli (lay member) | Spain EMEA Regulatory Board The EMEA regulatory sub-board is an independent decision-making body which gives regional support to the Global Regulatory Board. Thijs Stoffer, Chair of EMEA Regulatory Board (lay member) | The Netherlands Nicole Arnold (lay member) | Germany Gabriel Matar FRICS | France Nick Powlesland FRICS | United Kingdom Cyril Troyanov (lay member) | Switzerland

Europe Digest 2017 | 19

Who’s who in Europe

In your country

Contact the RICS team in your country or on rics.org/europe • Austria: ricsoesterreich@rics.org • Belux: ricsbelux@rics.org • Central and Eastern Europe: ricscee@rics.org (excl. Poland) • Cyprus: ricscyprus@rics.org • France: ricsfrance@rics.org • Germany: ricsdeutschland@rics.org • Greece: ricshellas@rics.org • Italy: ricsitalia@rics.org • Nordics and Baltics: ricsnordic@rics.org • The Netherlands: ricsnederland@rics.org • Poland: ricspolska@rics.org • Portugal: ricsportugal@rics.org • Spain: ricsespana@rics.org • Switzerland: ricsswitzerland@rics.org

20 | Who’s who in Europe

Share your thoughts EuropeDigest@rics.org

Europe Digest 2017 ISBN 978-1-78321-209-5 Copyright ÂŠ RICS 2017 All intellectual property rights in these materials, including but not limited to copyright, remain the exclusive property of RICS.

Confidence through professional standards RICS promotes and enforces the highest professional qualifications and standards in the valuation, development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards â&#x20AC;&#x201C; bringing confidence to markets and effecting positive change in the built and natural environments.

Americas Latin America ricsamericalatina@rics.org

North America ricsamericas@rics.org

Asia Pacific ASEAN ricsasean@rics.org

Greater China (Hong Kong) ricshk@rics.org

Greater China (Shanghai) ricschina@rics.org

Japan ricsjapan@rics.org

Oceania oceania@rics.org

South Asia ricsindia@rics.org

EMEA Africa ricsafrica@rics.org

Europe ricseurope@rics.org

Ireland ricsireland@rics.org

Middle East ricsmiddleeast@rics.org

United Kingdom RICS HQ contactrics@rics.org

rics.org EuropeDigest/November2017/Zone-I/EN