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London-headquartered Royal Institution of Chartered Surveyors (RICS) sees Real Estate Investment Trusts (REITs) taking off in a big way in India as more foreign institutions and funds take comfort from the improving regulatory system around valuations, a top official said.
This global professional body will take steps to ensure that quality and competence of valuation professionals in India meet the expectations of top institutional investors who are looking to enter the REITs market in the coming years, Sean Tompkins, Chief Executive, RICS, told BusinessLine here.
“The whole world is watching India to see how the REIT market is evolving here. It’s not just the country, but the entire world that’s looking at you. The success of your first REIT will dictate the flow of investments into this market. Many are positioning themselves to enter this (REIT) market and this will happen if international valuation standards are consistently getting deployed here in the Indian asset market,” he said
Tompkins also said that RICS will soon take steps to become a Registered Valuation Organisation (RVO) in India and get involved in the regulation of valuation professionals here.
Chris Brooke, President-Elect, RICS, said that all international institutional investors entering the Indian real estate market expect certain minimum standards, and they will drive those standards. RICS will work closely with such institutional investors to ensure that their expectation of consistency in application of internationally-recognised valuation standards is met in India, Brooke said.
Chartered surveyors
Tompkins said that RICS’ role will be to work with the top-end of institutional investors abroad and in India with regards to the REITs market. Brooke said that lots of people are watching the first REIT. “It’s like a chicken and egg situation. The product (REIT) has lot of merits,” he said. Tompkins said that RICS, which started its Indian journey a few years back, has already qualified 1,500 chartered surveyors out of India. “We are on track to meet our aspiration to qualify at least 10,000 chartered surveyors from India by 2029. This is the commitment we gave to the Indian Government when we came here, and we expect to achieve this,” he said.
Tompkins said that the introduction of REITs and RERA in India will drive the need for highly-skilled professionals.
“We will continue to expand in education (in partnership with AMITY University). We are also playing an active role in setting standards and regulation.
“Presuming that Indian authorities accept RICS’ submissions, we will start regulating the valuation industry in India and introduce international standards here.”
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