The International Property Measurement Standards (IPMS) will provide more transparency and consistency in the Real Estate markets around the world and is the result of a global initiative to develop a uniform method for calculating property area. It is expected to eventually replace a number of existing standards that are currently in use around the globe. This would make it possible to directly compare Real Estate data on property area worldwide for the first time. RICS (Royal Institution of Chartered Surveyors)* is a founding member of the initiative that developed the IPMS. A total of 55 professional organizations were involved. Their participation ensures that the new standard, which is to be used by industry participants and organizations around the world, specifies a single, unified standard. The IPMS were developed because different calculation methods are used to measure property area around the world, leading to uncertainty. For example, connected parking spaces are sometimes calculated as office space in India and recreational facilities could be included in Spain. ‘Theoretical’ floors may even be included in some regions of the Middle East, while in other regions only air-conditioned areas may be calculated, with the actual area being irrelevant. Depending on the measurement standard used, a calculation of the area of the same building can vary by up to 24 percent.**
* The Royal Institution of Chartered Surveyors (RICS) is a British professional association of real estate professionals and real estate experts
** Based on research by global real estate service provider Jones Lang LaSalle (JLL)
More about IPMS:
- The IPMS for office properties are available at www.ipmsc.org
- The IPMS Coalition was established during a meeting at the World Bank from
May 1, 2013 – May 2, 2013.
- The IPMS for office property are the first of a series of international area calculation standards, including the IPMS for residential real estate, IPMS for industrial real estate and the IPMS retail property.
- All organizations involved in the initiative have undertaken to include the new standards in their respective guidelines for industry professionals.
- RICS Chartered Surveyors will use the IPMS area calculation when working for their clients on markets worldwide.