Adopting IPMS initiative for confidence, consistency in property measurement

The growing sophistication in real estate assets is piling pressure on professionals, especially estate surveyors and valuers also known as land economists, to seek ways of upping their game with a view to benchmarking their practice against global best practice.

Measurement and standards are integral part of real estate surveying and valuation, and allied professions, which necessitates the need for concerned professionals to adopt a uniform and internationally acceptable practice that is capable of engendering confidence and consistency in property measurement.

At present, the way property assets such as homes, offices or shopping centers are measured varies dramatically and, according to Jimmy Olayinka Omotosho, Vice Chairman, Royal Institution of Chartered Surveyors (RICS), Nigeria Group, so many different methods of measurement in use make it difficult for property users, investors, occupiers, and developers to accurately compare space.

In some parts of the world, it is established practice to include common space such as lift shafts, communal hallways etc in floor area measurements whereas in others, off-site parking might be included or even swimming pools.

To deal with these differences and inconsistencies, Omotosho, also a Senior Partner at J.O. Omotosho and Associates, informed that an international group of professionals and not-for-profit organizations known as International Property Measurement Standards Coalition (IPMSC) came together to develop and embed a single property measurement standard called International Property Measurement Standards (IPMS).

In a paper he presented at a Heads of Practice Forum organised by the Lagos Branch of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) with the theme, ‘International Property Measurement Standards (IPMS): Office Buildings and its Impact on the Nigerian Property Market’, Omotosho hailed this initiative, saying it is a welcome development to the real estate sector worldwide.

Offiong Samuel Ukpong, the chairman of the branch, had earlier in his address highlighted the significance of the topic to his branch which he described as a pacesetter in innovation and standards, recalling that when a similar forum was organised last year, focus was on ‘International Valuation Reporting Standards’ (IVRS).

Among other things, the IPMS initiative has the benefit of providing a mechanism for benchmarking property measurement information across international markets as well as in the Nigerian market.

“It also provides a common and transportable method for property practitioners to use; enables international occupiers, investors and owners to benchmark their property assets without needing to spend significant sums of money and resource calibrating space measurements, and provides greater transparency and consistency to all property users”, Omotosho assured.

IPMS which comes in categories 1,2 and 3 applies to office, residential, retail, industrial and mixed use properties only but while IPMS Office buildings which refers to a common methodology for measuring office space globally is the first in a series, others are expected to follow in the next 24 months.

Omotosho advised that “NIESV as one of the coalition organisations should develop additional training and guidance for professionals to use”, adding that the institution should also write IPMS into their Professional Statement, which will become mandatory for members over time, and be appropriately regulated.

CHUKA UROKO