RICS Global Performance report: Q3 2018-19

Global performance report 2018-19

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Q3 - Global Performance Report 2018-19

Q3

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 that, through a combination of the profession’s pursuit of standards, its expertise and innovation, and our collective voice and influence, we can bring about real change and better outcomes as the world urbanises and tackles the challenges of climate change and resource scarcity, maintaining connectivity, the ageing population and the impacts of technology on the way we work and live.

RICS aims to lead the profession in bringing together professionals, like-minded organisations, policy makers and market influencers to help find the solutions that will be required to address the challenges we face in the built and natural environment. As we approach the date of our 2019 World Built Environment Summit in New York we report here on the progress we have made engaging thought-leaders, major employers and end users in the issues we see as most important to shaping the world we live in.

Our business plan for 2018-21 sets four strategic priorities that will position RICS as a fit, globally relevant and trusted professional body for the 21st century.

• I nfluential: RICS is an influential body on issues of global significance and brings about beneficial change in the world.

• T rusted: the standards to which RICS professionals work are demanded and adopted in the major economies of the world.

• I n 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.

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

Significant milestones in this quarter • Thought leadership: adoption of our market survey across the European System of Central Banks and our first invitation to participate in a government coalition in China along with further opportunities for RICS to promote the value of surveying on high profile international platforms.

• International standards: demand for RICS international standards continues with notable adoption achievements in regard to the RICS Valuation –Global Standards 2017 (Red Book) this quarter across major end users in Europe and Asia such as State Grid Corporation of China and PwC in the UK. This Q3 report is a summary of RICS, worldwide performance against our objectives and strategic goals in the third quarter of the 2018/2019 financial year (February – April 2019). It is available to members of the profession, employees and other key stakeholders.

We welcome all comments on this report.

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

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Q3 - Global Performance Report 2018-19

Context To achieve Governing Council’s vision, the 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.

Q3 - Global Performance Report 2018-19

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Key achievements this quarter An influential thought leader Through collaboration with others we are working to bring about beneficial change in response to the major challenges the world faces. We continue to make progress by building trust with our stakeholders globally to set and enforce consistent standards for the profession.

Respect and trust for RICS market surveys continues to grow.

• RICS European data from the Global Commercial Property Monitor has been adopted by European Central Banks (ECB) and will be placed on the platform of the European System of Central Banks. This will go out to all European Central Banks and the data will attributed to RICS. • Haver Analytics have signed up to our RICSSpacious Hong Kong Residential Market data making the data available to investors and investment bank subscribers globally.

• RICS presented to the recent Bank of England Residential Property Forum who praised the RICS work prompts recognition and engagement from governments.

• Following the adoption of IPMS by the Administration Committee of Beijing, RICS has been invited to join a government coalition – CBD Building Alliance. This is the first time RICS will be part of a governmental coalition in China.

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Q3 - Global Performance Report 2018-19

• The UK government’s housing delivery agency, Homes England, has referenced the RICSauthored UN Global Compact Responsible Business Toolkit in its published anti-slavery policy statement.

We continue to use international thought leadership platforms to promote the value of the profession.

• RICS promoted an insight paper Value of Natural Capital – the need for Chartered Surveyors at the World Bank Land and Poverty Conference in Washington DC. • International Finance Corp (IFC), the largest global development institution focused exclusively on the private sector in developing countries, is collaborating with RICS as a sponsor for the New York World Build Environment Forum Summit, an Africa summit and a webinar on urbanisation.

Trusted by clients in our key markets RICS standards for the profession continue to be adopted in the major economies of the world by government and end users.

Asia • Shenzhen World Union Appraisal Co. Ltd. has adopted the Red Book and will promote Red Book among their clients as well as their valuers. The company provides services in 186 cities in China and is listed on the Shenzhen Stock Exchange.

• State Grid Corporation of China (SGCC) has recognised the RICS qualification as crucial scoring criteria during bidding assessment for the Extra-High Voltage (EHV) Project in March 2019. SGCC is the largest public utility in the world and supplies power to over 1.1 billion people covering 88% of Chinese territory.

• Beijing Jinlian Real Estate Appraisal Co. Ltd has adopted the Red Book.

Europe and UK • PwC, the largest professional services firm in the world, has adopted IVS and the Red Book for its real estate valuations in the UK. • European Banking Authority (EBA) handbook Valuation for Purposes of Resolution references IVS as an authoritative source of valuation methodology. RICS Red Book is the only standard in the European market that fully adopts IVS. The handbook goes out to all Central Banks in the EU to foster convergence and consistency in valuation practice.

• The Ministry of Finance in Greece has adopted IVS and the Red Book and recognises RICS qualification as a prerequisite for professionals who want to be included in the Register of Certified Appraisers of the Greek Ministry of Finance.

• Agenzia del Demanio, the Italian Public Property Agency has fully adopted IVS and the Red Book requesting all assets to be valued accordingly. It now requires 10 experts to check the fairness of the valuations and they will all be RICS qualified.

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81,685 • The Technical Chamber of Greece (TEE-TCG), a professional organisation that serves as the official technical advisor of the Greek state and is responsible for awarding professional licences to all practicing engineers in Greece, has adopted IVS and the Red Book as their standards.

• The Banco de Portugal, the Portuguese Central Bank, has adopted IVS and the Red Book.

• AFIAA, the Foundation for International Real Estate Investments (Switzerland), has adopted IVS and the Red Book.

• AENA, the world’s number one airport operator with 280 million passengers in 2018, has adopted IVS and the Red Book. AENA are putting out tenders requiring that valuations are done by RICS regulated companies and registered valuers.

• Caixa Bank, Spain’s third largest bank, has adopted IVS and the Red Book.

• Alstria, one of the leading commercial real estate investment trusts in Germany, has adopted the Red Book.

At the end of March, we are broadly tracking our year-to-date underlying financial plan. Professional subscription renewals have been strong, commercial revenues are ahead of the previous year, however, we are very mindful of the current market uncertainties in relation to Brexit. Such uncertainty can result in businesses holding back on expenditure and we remain alert to the potential impact on our own performance. We continue to explore new ways of meeting needs and reducing our own operating costs enabled by an increasingly sophisticated digital landscape.

The investment we are making in our digital program will begin to yield returns from 2020.

people in the global LinkedIn group and 104,274 followers

59,466 fans on Facebook

7,319

followers on Instagram

5,981

subscribers on YouTube

Q3 - Global Performance Report 2018-19

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109,831 2,911 RICS-qualified professionals worldwide

6,298

new candidate enrolments (26% female, an increasing trend over last year) at the end of Q3 2018-19 6

Q3 - Global Performance Report 2018-19

45%

41%

new professionals (25% female) awarded RICS designations at the end of Q3 2018-19

of these newly qualified professionals are based outside the UK & Ireland notably China (11%), Europe (10%), East Asia (9%)

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

22,676 candidates in 130 countries

using our online assessment resource (ARC) to prepare for their professional assessments

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 MAY2019/DML/23563/GLOBAL