Expect new floor space measurement standards soon
The International Property Measurement Standards (IPMS) for residential buildings will provide a uniform global method to determine their size and dimension and help home buyers take informed decisions
Following government efforts to bring in transparency in the real estate sector with the Real Estate (Regulation and Development) Act, 2016, the real estate fraternity has now brought out a uniform property measurement that will enable investors, estate agents, developers, consumers and other users of professional property services to make more informed decisions
The International Property Measurement Standards (IPMS) for residential buildings will provide a uniform global method to determine the size and dimension of floor space measures that can be used anywhere in the world.
The proliferation of local standards to govern the measurement of buildings has created measurement inconsistencies across countries. In India, there is inconsistency within the country and standards too differ from market to market. As a consequence, owners, occupiers and investors in residential property are often left confused or misinformed when it comes to the reported floor space. This has led to disputes and cases where rental calculations and service charges have relied on erroneous measurement information.
A recent RICS report found the difference in measurement for residential apartments globally can vary by as much as 27%, and for residential homes by up to 58%, when compared to the IPMS for residential buildings.
“Buyer confidence is low and the best of builders are finding it difficult to sell homes. In such times, IPMS is expected to boost investor and buyer confidence. Adoption of uniform property measurement standards will send a message to homebuyers that the Indian real estate sector is serious about adopting global best practices,” says Sachin Sandhir, global managing director - Emerging Business and managing director-South Asia, RICS.
“IPMS: Residential Buildings addresses a simple but challenging reality: How do we provide transparent and consistent measurements for domestic properties when the methods used to perform these measurements differ across global markets? For many, owning a home is the most important investment they’ll make. This new standard will enable investors, estate agents, developers, consumers and other users of professional property services, to make more informed decisions. IPMS: Residential Buildings is ultimately about protecting the investments we make as individuals, investors or industry leaders,” says Alexander Aronsohn, RICS director, Technical International Standards.
In March, 2015, leading property experts had converged in the national Capital to understand the best way to implement IPMS for residential buildings in the Indian market. The IPMS Standard Setting Committee met with high level Indian stakeholders including the securities market regulator, the Securities and Exchange Board of India (SEBI), the Ministry of Housing and the National Real Estate Development Council (NAREDCO).
Published by a coalition of more than 80 property organisations around the world and drafted by an independent group of 18 experts from 11 countries, IPMS: Residential Buildings is the second in a series of global open-source standards aimed at creating a uniform approach to measuring buildings. Representing many hundreds of thousands of property professionals globally, the IPMS Coalition conducted a public consultation giving property professionals everywhere a chance to have their say on this landmark residential standard.