The Future of Valuation
The dynamics of the valuation profession are changing rapidly. Probably the most important question here is, do we real fit as surveyors or asset economists? The question is of particular importance as we try to define where we belong and who should we align ourselves with. I do understand in particular that transitions between eras are dizzying. As James Allen puts, “The edges (of a transitions) are fuzzy and often become clear only in hindsight”. Some elements of the previous era remain in place, while others evolve into something quite different.
A prominent definition of surveyor views surveyors as ‘a professional person with the academic qualifications and technical expertise to conduct one, or more, of the following activities; to determine, measure and represent land, three- dimensional objects, point- fields and trajectories; to assemble and interpret land and geographically related information, to use that information for the planning and efficient administration of the land, the sea and any structures thereon; and, to conduct research into the above practices and to develop them.’ FIG. From the definition it seems that a surveyor has to be primarily involved with land and its information. Today, a valuer is no longer bound entirely in land transactions in fact valuer has become an asset economist. Technologies, functions, markets and customer expectations of valuers are all changing rapidly. More clients are seeing valuation as tool to guide business and financial decisions such that it feels harder to categorize a valuer as a surveyor rather than an assets economist.
By looking into the future and analyzing trends we can be able to understand valuers of the future and their position. Focusing specifically on the Valuation and Valuers Registration Act of 2016 four themes are likely to shape the valuers of the future: operational parameters; future employers; required professional skills; and assets of the future. These four themes have been reflected focusing on the changing roles of valuers and they clearly provide a picture of what lies in the future.
Technological disruptions are shaping the future of every profession and the way assets will be designed and operating. The dominance of built structures as the major asset class defined the surveying profession and made every professional working closely with land and building information a surveyor. Advancement in technology and skills has bred new frontiers in terms of property products that the future of valuation may no longer be related directly to physical structure but rather on the intangible benefits and rights. Intangible rights such as leasehold interests, business rights, financial derivatives, e-assets and property rights will form the center of valuable assets. As the world is moving towards an e- world fueled by the internet of things and artificial intelligence digital assets will form the major value base and its where most transactions and valuation services will be needed.
To our economies this stage may be perceived as a dream, however business rights, financial instruments and property rights transactions are gaining dominance in our markets hence providing future opportunities to valuers.
Read more articles