Global Quarterly Performance Report, Q2 2018-19

Global Performance Report 2018-19

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Q2 - Global Performance Report 2018-19

Q2

rics.org

Introduction Reflecting the strategic direction we are taking, and the expectations placed on us, we continue to deliver on our ambitious vision set out by Governing Council: Through our credentials and our professional standards, we will create confidence in markets and be known for effecting positive change in the built and natural environments.

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.

• In Demand: as a result of market respect and demand for our profession’s standards and qualifications, highly talented individuals will choose to qualify, commit to lifelong professionalism, and work to RICS standards.

• RICS governance reforms: an overwhelmingly positive vote from our profession to proceed with changes to RICS’ governance, which will help ensure the profession’s future in a rapidly changing world.

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.

• Sustainable: the organisation is efficient and financially stable, and the profession and RICS employees are highly engaged, proud and increasingly diverse.

This Q2 report is a summary of RICS’ worldwide performance against our objectives and strategic goals in the second quarter of the 2018/2019 financial year (November 2018 – January 2019).

It is available to members of the profession, employees and other key stakeholders

Looking ahead, and on the basis of progress made this year, our business plan for 2018-21 sets four strategic priorities to position RICS as a fit, globally relevant, and trusted professional body for the 21st century: • Influential: RICS is an influential body on issues of global significance and brings about beneficial change in the world.

• Trusted: the standards to which the profession work are demanded and adopted in the major economies of the world.

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Q2 - Global Performance Report 2018-19

Significant milestones in this quarter: • Thought Leadership: adoption of our market surveys by leading organisations.

• RICS qualification: notable recognitions of the RICS qualification, coupled with adoption of the Red Book for valuations and uptake of our FM Professional Statement.

• International Standards: demand for international measurement standards continues, with significant adoption achievements in China and the Middle East.

We welcome all comments on this report.

Paul Marcuse Chairman, RICS Management Board Sean Tompkins Chief Executive Officer, RICS e contactrics@rics.org

Context To achieve Governing Council’s vision, Management Board established strategic goals for the 2017-20 business plan period.

Strategic goals • Our standards adopted

The standards to which RICS professionals work are demanded and adopted in the major economies of the world.

• Profession in demand As a result of market demand for RICS standards and credentials, highly talented individuals choose to qualify and work to our standards.

• Trusted by our stakeholders We remain trusted to set and enforce standards for the profession.

• Influential profession RICS brings about beneficial change in response to the major challenges the world faces.

• Sustainable professional body The profession and RICS employees are highly engaged, proud and increasingly diverse. The organisation is efficient and financially stable.

Q2 - Global Performance Report 2018-19

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Key achievements this quarter An influential thought leader We are building RICS’ reputation for shaping thinking on the strategic issues relating to the built and natural environments, where RICS professionals can make a real difference.

The World Economic Forum recognised the work of Earl Forlales – winner of the RICS Cities for our Future competition – to create a low-cost bamboo housing solution (CUBO) in response to the crisis in affordable housing supply.

Our market surveys are increasingly valued by decision makers: • The New Zealand Central Bank’s Credit Conditions Survey cited the RICS Global Commercial Property Monitor in its November report • The Dutch Central Bank’s Autumn Financial Stability Report cited RICS data indicating positive market sentiment and strong demand for high-grade commercial real estate • The Hong Kong Monetary Authority (central bank and market regulator) has asked to receive our monthly Residential Market Monitor for use in their research • Oxford Economics has begun to cite RICS survey findings in their briefings to a client base of 1,500 international corporations, financial institutions, governments and universities

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Q2 - Global Performance Report 2018-19

• Bloomberg’s Intelligence report on Hong Kong Home Market Sentiment now cites the RICSSpacious Hong Kong residential market survey

Middle East

We stepped up our efforts to convene leading influencers:

• The Qatar International Centre for Conciliation and Arbitration has also recognised the RICS qualification

• Our monthly World Built Environment Forum Webinar Series has attracted senior participants from around the globe to interact with leading experts and practitioners in blockchain, property technology and workplace • The inaugural RICS Leadership Forum for Construction took place in Mumbai, focused on procurement, transparency and standardisation

• Qatar’s Ministry of Municipality and Environments now recognises the RICS qualification

• The Government of Bahrain has adopted International Valuation Standards and the RICS Red Book • Alstria, a leading Commercial Real Estate Investment Trusts in Germany, now requires property valuations to be done in accordance with the Red Book

• Another inaugural RICS Leadership Forum – on Commercial Real Estate and FM – met in Bengaluru to discuss technology, life cycle thinking and data sharing

Europe and UK

Trusted by clients in our key markets

• TINSA, a Spanish valuation firm that is rapidly growing in Latin America, has become an RICS Regulated Firm

Asia

• John Lewis, a UK retail chain with over 80,000 employees, has adopted the RICS FM Professional Statement

• Hong Kong Land Department announced that RICS qualifications would be recognised alongside qualifications awarded by the Hong Kong Institute of Surveyors (HKIS) • We have agreed with HKIS to recognise each other’s geomatics qualification pathways

• Credito Agricola, a major Portuguese bank, now asks for Red Book valuations and specifies Valuer Registration in its tender documents

• Gardiner and Theobald (UK) have committed to adopting the RICS Procurement of Facility Management professional statement

International standards are increasingly adopted: • Glodon, the premier digital construction platform service provider in China, has adopted International Property and Construction Measurement Standards (IPMS and ICMS) • China National Aviation Fuel Group, the largest state-owned aviation fuel supplier in China, also adopted ICMS, acknowledging the standard’s relevance to the Belt & Road initiative • Three Chinese consulting firms in Beijing and Shanghai have adopted ICMS • The Abu Dhabi Government has incorporated IPMS into their Property Measurement Standard

4,398

new candidate enrolments (27% female) at the end of Q2 2018-19

90,505 followers on Twitter

81,234

people in the global LinkedIn group and 94,802 followers

58,976 fans on Facebook

6,818

followers on Instagram

5,535

subscribers on YouTube

Q2 - Global Performance Report 2018-19

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109,867 RICS-qualified professionals worldwide

Renewal of professional subscriptions is ahead of last year

20,937 candidates and 5,420 assessors

2,329

new professionals (24% female) awarded RICS designations at the end of Q2 2018-19

40%

Q2 - Global Performance Report 2018-19

of newly enrolled candidates are based outside the UK & Ireland, notably China (9%), MENA (7%) and Europe (6%)

of newly qualified professionals are based outside the UK & Ireland, notably China (10%), Europe (8%), East Asia (7%)

using our professional assessment resource (ARC) 6

36%

ÂŁ0.3 million

ahead of our year-to-date financial plan (at end December)

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 – bringing confidence to markets and effecting positive change in the built and natural environments.

Americas

Asia Pacific

EMEA

Latin America ricsamericalatina@rics.org

Australasia australasia@rics.org

Greater China (Shanghai) ricschina@rics.org

South Asia ricsindia@rics.org

Africa ricsafrica@rics.org

Ireland ricsireland@rics.org

North America ricsamericas@rics.org

Greater China (Hong Kong) ricshk@rics.org

Japan ricsjapan@rics.org

Southeast Asia sea@rics.org

Europe ricseurope@rics.org

Middle East ricsmiddleeast@rics.org

United Kingdom RICS HQ contactrics@rics.org

rics.org FEB2019/DML/23382/GLOBAL