FIG Commission 9 - Valuation and the Management of Real Estate

Working Group 9.2
Blockchain

Introduction

Commission 9 has an important role to play in bringing economic and valuation issues to bear with regards to technology advances such as Automated Valuation Models (AVMs), Blockchain, GIS and technology enabled taxation systems. This workgroup will also lead on the Comm 9 involvement with the FIG taskforce on Sustainable Development Goals (SDGs). Valuation/appraisal is central to the achievement of several SDGs and is a major enabling element of the New Urban Agenda.

Policy Issues

Valuers need to be aware of the impact of technologies such as big data and automated valuation and are strongly recommended to increase their understanding. In certain cases, such as with lowrisk valuations, the AVM may completely replace the valuer. In many instances however, the valuer and the AVM will need to work hand in hand, with the professional valuer ensuring that data used by the AVM is properly checked using forecasts, then the results are analysed and interpreted, and reported on in an understandable way for the client. The valuer will need to embrace technology or be overtaken by it. It is hoped that the use of AVMs will ultimately make it possible for professionals to spend more time working on complex valuations

Chair

Ben Elderm
United Kingsom
belder[at]rics.org

 

What we are working on -

  • Commission 9 direct involvement with FIG taskforce on SDGs
  • Potential FIG output on the use of Blockchain within valuation systems
  • LADM IIvaluation expertise and input.

What's New

Progress:

Publication of RICS Insight Paper supported by FIG achieved February 2020.

Brief Background to Project:

Every so often a revolutionary digital break-through emerges. The most recent being a technology allowing a decentralised, reliable and verifiable record of transactions, which is maintained across multiple computers using peer-to-peer networking and cryptography – blockchain. Blockchain came to public prominence as the digital architecture underpinning Bitcoin and other cryptocurrencies that blossomed following the financial crash of 2008. It soon found potential applications in other fields, including a wide range of sectors in which Surveyors operate. But where will the technology add value? What are its limitations and risks? And how likely are today’s professional firms and other industry players to take advantage of the opportunity that blockchain represents? This project produced an RICS insight paper that provides a balanced view of the outlook for blockchain, its application to the real estate, built and natural environment and construction industries, and what it could mean for Surveyors looking to stay at the forefront of innovation.


©2020 FIG