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Europe Digest 2019 rics.org
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Our vision:
Through our credential and our professional standards we will create confidence in markets and be known for effecting positive change in the built and natural environments
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As the world changes, so must we
Over 150 years have passed since the inauguration of RICS, and our professionals today face many of the same challenges as the pioneers of 1868: sustaining knowledge as technology advances, and as the opportunities and risks of applying those technologies grow. As the rate of change increases, staying abreast of market trends, having a continual programme of training and embracing new working practices becomes increasingly important.
Our ground-breaking work on the World Built Environment Forum and Summit has served to highlight the active contribution RICS professionals continue to make to our environment, economy and society, and how through their skills, knowledge and talent, they are raising the bar on what is possible. Our ‘Cities for our Future’ challenge invited imaginative problem solvers to submit transformative ideas for projects and policies that solve some of the defining challenges of our time: rapid urbanisation, climate change and resource scarcity. What better way to inspire the next generation than through those who are building the future right now?
Our 150 celebrations have been a fantastic opportunity to recognise the people who have made and continue to make RICS a driving force for our sector. The response to the numerous 150 anniversary events and activities held in Europe and globally has reinforced that RICS is more than a collection of people looking for competitive advantage: we share a set of values that underpin what it means to be a professional.
Whatever developments are on the horizon in terms of work, technologies and skills, the real value proposition that our professionals represent is trust. Building trust by reinforcing the personal responsibility that each one of our professionals must uphold the highest standards of ethical behaviour continues to be a key focus area for RICS. Our programme of standards development and thought leadership on topics such as conflicts of interest and anti-money laundering, bribery and corruption encourages RICS professionals to use their powerful influence to further build trust across the industry.
Through this Digest, we hope to give an insight into our thoughts on the future and where it might lead for RICS in Europe and our sector in general. However, this is only the start of our journey, and we will continue to engage with you and rethink how we work to ensure that we are all equipped to address the risks and opportunities within the built and natural environments.
Tina Paillet FRICSChair, Europe Board
Rob JacksonManaging Director, Europe, Middle East and Africa
Judith GablerInterim Managing Director, Europe
Sander ScheurwaterDirector Corporate Affairs, Europe
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TrustedAssurance
Credentials in demand
Regulation staff working in RICS offices around the world focus on issues individuals and firms need to get right to offer clients a safe marketplace, inspire confidence, and maintain the reputation of the profession.
The RICS credential and the standards we enforce constitute a benchmark for property professionals as well as a guarantee for clients and the public.
of RICS qualified professionals aged between 23-38 are women
of qualified members in Europe are aged between 23-38, an increase of 15% from 2017
1,677 28% qualified as MRICS,
FRICS or AssocRICS in Continental Europe
8,454
Numbers
83% 83%81%
RICS professionals in Europe think RICS is doing a good job of maintaining professional qualifications
Believe RICS effectively regulates to protect the public and the profession
Believe RICS shows leading thinking on issues of global significance
PrideOur Pride in the Profession initiative showcases the significant and positive impact our professionals have made to society.
We remain committed to our aim to foster market and stakeholder trust in ethics and standards.
499 regulated firms
1,273 registered valuers RICS professionals
in Europe undertook at least 20 hours of CPD training
96%36 regulatory review visits conducted
Figures as of November 2018
European membership figures as of July 2018
95%
in Europe are ‘proud to be a member of RICS’
‘agree with what RICS is trying to achieve’
88%
number of RICS professionals who celebrated our 150th anniversary with us at various events across Europe
3,000+
Source: RICS Survey of the profession 2017
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A driving force for our sector
INSPIRING DELIVERING RESU
LTS
MANAGING CHANGE
• All major Dutch banks now have RICS professionals in their boards.
• Luxembourgian Fund Association (ALFI) indicates that 77% of all valuations conducted by its members have been carried out according to the RICS Red Book.
• BNP Paribas Real Estate in Germany, France and Italy have confirmed that they will continue with a personnel development policy that actively supports employees in becoming RICS qualified.
• In a survey commissioned by Galtier Valuation, the RICS qualification is acknowledged by a panel of leading real estate experts as being ‘universally recognised’ within the real estate sector in France, and the best known within the market (91.9%).
• Aena SME, a trading company that manages 46 airports and 2 heliports in Spain and also participates in the management of 16 airports in different countries in Europe and America, requires that valuations are carried out by RICS regulated firms only.
• Major companies in Europe, adopted our Conflicts of Interest Professional Statement.
• RICS Regional Manager Judith Gabler was voted Germany’s number 1 female influencer in real estate by Immobilen Manager in recognition for her work to promote professional and ethical standards, making RICS one of the leading voices in the German real estate industry.
• RICS played a major role in the European Commission’s common European reporting framework to improve the sustainability performance of buildings. It includes the recommendation to use International Property Measurement Standards (IPMS) for floor area measurement – a first positive reference of IPMS in an EU policy tool – and a ‘value indicator’, referencing the RICS Red Book, which aims to bring the assessment framework closer to the end-user and investor communities.
• RICS was appointed a member of the technical expert group supporting the European Commission in the creation of an EU taxonomy to implement the action plan on sustainable finance, fight climate change and implement the Paris Agreement.
RICS in Europe, together with a wide range of local and international partners, achieved some important results in 2017-18.
Inspiring the future generationWe believe it is vitally important to support projects that inspire young people whilst motivating them to learn about the challenges that our world faces and find solutions. Our global competition ‘Cities for our Future’, encouraged the next generation to lead solutions to the major challenges facing the built environment through professional expertise. From the 1,200 entries from around the world, European winner Tijmen Dekker from the Netherlands was shortlisted for devising an innovative idea for a system to capture and filter rainwater in urban areas. More information about these projects and the overall global winner is available on citiesforourfuture.com
Influential thought leader
RICS professional
qualifications in demand
Trusted by our
stakeholders and society
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Confidence in business, government, NGOs and media is in global decline. As we talk to market leaders and senior professionals, we hear recurrent themes about what is most needed to rebuild trust in our sector. Maintaining and advancing professional standards that improve efficiency, transparency, reduce risk and inform better business decisions, feature consistently in our discussions.
Professional bodies like RICS play a vital role in providing trusted expertise through regulated standards that ensure public expectations of good practice and social purpose are met. RICS standards guarantee proficiency and quality, encouraging confidence and trust in the services offered by those accredited by RICS. This is increasingly important in our services-oriented economy where knowledge forms the basis of many transactions.
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Trust in crisis Identifying risks and developing standards to address them
In recent years, we have made major investments in developing a wide range of standards, from the competence required to enter the profession, to global technical standards and ethical principles. They encompass:
• Standards of conduct: these include the RICS Rules of Conduct and several related mandatory standards which set out the RICS requirements, across all disciplines, with respect to competence, ethical conduct, service standards and consumer protection. Our global professional statement on conflicts of interest, in force since January 2018, provides clear rules for RICS professionals and regulated firms to identify and manage potential conflicts of interest. Standards of conduct apply to all RICS professionals and regulated firms.
• Sector standards: these apply to specific disciplines within the profession: building surveying, construction, dispute resolution, land, real estate, and valuation. Sectoral standards establish the expectations of RICS professionals and regulated firms when practising in these sectors and relate primarily to technical competence and ethical conduct.
Standards are developed based on risk and opportunity, to support the delivery of quality services to clients and the public. The key principles in the development of RICS standards are that they:
• respond to a need in the market
• are based on global expert opinion
• are developed through consensus and refined through consultation.
In 2018, RICS consulted on a new standard designed to help property professionals and regulated firms address the risks posed by bribery and corruption, money laundering and terrorist financing. To be published in early 2019, the new professional statement will work alongside and enhance RICS’ pre-existing obligations for professionals on these matters which are found in the Rules of Conduct.
Looking ahead, our focus will expand to re-examining conduct and ethics, professional competence, indemnity insurance, data security and cybercrime, and safeguarding the handling of client money.
The input of RICS professionals in implementing and maintaining professional standards is crucial to their success. Further information on the development of these standards and how to respond will be communicated over the coming months. You can review all RICS professional standards currently in force by visiting rics.org/standards
“To rebuild trust and restore faith in the system, institutions must step outside of their traditional roles and work toward a new, more integrated operating model that puts people at the centre of everything they do.”
Richard Edelman 2017 Global Trust Survey
The value proposition that RICS professionals represent is trust.
Our programme of standards development and thought leadership on topics such as conflicts of interest
and anti-money laundering, bribery and corruption encourages RICS
professionals to use their powerful influence to further build trust
across the industry.
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Staying a step ahead
As many roles within the built environment sector change, our challenge now is moving to the next phase – adjusting how we think, train and work – to create optimum value.
In 2018 we launched a consultation which builds on the ground-breaking RICS Futures: Our Changing World and seeks insight into the key global issues and trends driving change in the built environment. It draws extensively on the views of members of the profession working across a wide breadth of specialisms and markets and attempts to summarise how the profession is adapting to a more frenetic, uncertain and digitalised age.
Over the last eight months we have convened well over a thousand conversations through roundtables, seminars, consultation and outreach to understand how the change we documented in 2015 is producing an impact across the profession as well as the clients and markets we serve.
As your professional body, we want to provide you with the tools to navigate the changing market. We intend to publish our second major Futures Report in 2020 and the consultation we have conducted in the second half of 2018 is the first stage in preparing for this.
What we asked
Participants were asked to think about how key external drivers of change such as urbanisation, climate change and technology
will impact our industry and professionals working in the built and natural environments.
Ethics and social responsibility
Embracing professional ethics is not new, but as digital technology continues to change, strong ethical principles and behaviour will become a key enabler to building trust. It will also become increasingly important to demonstrate that services are designed to aid human well-being, not just to maximise profit.
Ability to adapt and develop
Professional boundaries are becoming blurred; the need for solutions to global problems means industry professionals can no longer afford to work in silos. Roles will therefore need to be reimagined in future to deliver value in new ways. Unsurprisingly, as we renegotiate the human/machine division of labour in the coming years, some noted: “Keeping pace with technology is key to having an edge over competitors”. As working practices and roles change, professionals need to re-evaluate what they can bring to table and what a machine cannot – unique insights critical to decision-making. Other comments raised the need for “improvements and efficiencies, and transformational service delivery models.”
Changing approach to education
Respondents advocated the importance of education throughout a career, with a focus on learning throughout lifetimes, a need to boost skills that are not currently viewed as primary; to refocus on adult education, and specific tech training around bespoke solutions that don’t yet exist. Innovative methods of learning delivery may be the way forward to ensure professionals are equipped for roles of the future. Individuals will need to take responsibility for upgrading their skills, but to drive real change, employers, universities, schools and RICS will all need to work together. It’s likely we will see a move towards more flexible training – learning through online platforms, face-to-face training or hands on experience, mentoring and community sharing programmes.
Cross-generational workplace
Attracting, developing and retaining staff is a sectoral issue that must be addressed if we are to build cities that people want to live, work and play in. New ways to deliver education will not only change the way we educate for the better but will ensure young talent is not dissuaded from bringing their skills and knowledge into the profession. At the same time, it is essential to ensure that we do not lose the skills and experience of senior members of the workforce before it is imparted on the youth. Diversity is increasingly seen as a driver of innovation: a combination of different ages, skills, disciplines, and working and thinking styles to maximise new possibilities, boost creativity – and to secure trust.
In the coming months, we will explore some of the key themes that have come out of this research, and outline ways in which we are beginning to respond to these suggestions. However, this is only the start of our journey and we will continue engaging with you and changing our practices to ensure that we are all equipped to address the risks and opportunities within the built and natural environments. Follow the results at rics.org/futureprofession
19%will require new
skill sets
10.5%will be
service led
14%won’t have
changed much
57%will be more
efficient thanks to technology
In five years from now, the profession…
RICS Twitter followers were asked what they thought would be the key trend
Source: Modus 10/18 the Agile issue
TL1
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TL2Finding global solutions
From shrinking birth rates to growing pollution, expanding megacities and booming middle classes, urbanisation is a key issue of our time. Cities are struggling to cope, while huge demands are being placed on infrastructure, services, housing, transportation and the environment.
Creating practical solutions
At RICS, we see a need for collaborative, responsible leadership to face inter-connected issues and help develop the cities our populations need. The RICS World Built Environment Forum (WBEF) joins together leading thinkers, experts and decision makers to create practical solutions to the world’s challenges. Designed to challenge conventional wisdom and to promote innovative thinking about the future, WBEF allows RICS to look at the built environment through a holistic lens.
Changing nature of work
The London Summit in 2018 – the Forum’s third and most successful yet – brought together some of the world’s sharpest minds to help us understand and navigate the challenges lying ahead. Over 1000 delegates heard leaders from companies such as
Tesla, IBM Watson IoT, Intel Corporation and Deliveroo share their knowledge, skills and experience on how populations will live and work in the coming decades. In 2019, the Summit travels to New York, where our focus will be on the changing nature of work and its profound impact on urbanisation. We will also pay special attention to how we can accelerate the flow of capital into green assets and seize the opportunities of a low carbon economy.
More than a conference
While the Summit is the centrepiece of the Forum, it also exists 365 days a year as a digital community of experts within and beyond the property sector, academia and government, who contribute their knowledge and insight on how we can shape a better built environment.
Forum members are encouraged to share their views on the key challenges and developments of our time and engage in commentary on relevant issues. Through scoping and monitoring trends and highlighting the implications, the Forum is an invaluable source of insight on how professionals in the built environment can better prepare for the future.
Your insight is important
RICS is continuously looking to increase the number of experts on the Forum to strengthen the network and continue producing transformative ideas. Play your part and join the World Built Environment Forum community on LinkedIn, and stay in touch through our dedicated Forum newsletter.
Further information about the 2019 Summit, how to register and reports on a range of critical global issues can be found on the World Built Environment Forum website www.rics.org/wbef.
“Give people the tools to understand the issues, the skills to provide a solution and the environment to facilitate discussions about how to implement it.” Comment from the RICS Future of the Profession consultation 2018
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RICS is a profit for purpose organisation that seeks to maximise investment in our long-term vision.
We continue to invest in thought leadership, standards and their enforcement, training and education, and in our digital offering.
Regional and local service provision 19.6m
Creating and enforcing professional standards 12.0m
Gaining influence and building brand profile 11.6m
Technology development and operations 5.3m
Legal and governance 2.8m
Depreciation and amortisation 2.5m
Finance operations and ongoing compliance 2.5m
Property operations and lifecycle maintenance 2.3m
Central activities 1.4m
59% Membership income
37% Commercial income
4% Other income
86.5mglobal revenue
RICS income at work
Creating and enforcing professional standards The creation and enforcement of global standards in construction, ethics, land, measurement and valuation are at the core of RICS’ mission. They create greater consistency and transparency in an increasingly connected global economy.
2
12m
10.8m in 2016
Gaining influence and building brand profile RICS delivers international best practice that is recognised around the world, ensuring greater financial stability, reduced risk and increased customer trust. RICS offers the possibility of connecting with global peers, both face-to-face and online.
11.6m
3
10.4m in 2016
Technology development and operations RICS fully embraces innovation in technology and data and are continuing to review and upgrade our entire operational model to ensure it meets the needs of today and the future. We have investment plans for a complete overhaul of our digital infrastructure and technology environment and will install new digital technology to deliver our services.
5.3m
4
4.7m in 2016
Legal and governance RICS top-level strategy is set by our Governing Council, chaired by the president. The council meets twice a year and is supported by world regional boards, national councils, UK regional boards, professional group boards, and policy committees. In 2018, RICS Governing Council proposed several changes to governance of RICS to make it more agile and responsive in its decision making, to ensure that specific skills and sectors are represented, and that our profession remains trusted by society to set and enforce its own standards. The results of the member vote can be found at rics.org/future.
2.8m
5
2.8m in 2016
Regional and local service provision RICS professionals in Europe are supported by multilingual staff in 11 countries. Together with local advisory boards, they provide advice and assistance to RICS professionals in each market, along with market-tailored conferences, training and networking events.
19.6m
18.0m in 2016
1
29.5m cost of sales
Note: Information relates to global figures for the year ended 31 July 2017
Membership map
Nordics and Baltics [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
466 43 402 – 445 21 –
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
577 25 508 – 533 44 –
Poland [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
378 21 339 1 361 17 –
Austria [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
302 26 257 – 283 19 –
Germany [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
2,071 222 1518 – 1740 331 –
Netherlands [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
1,090 51 859 – 910 174 6
Belux [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
321 30 260 – 290 31 –
France [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
1,718 128 1,232 3 1,363 355 –
Spain [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
627 47 495 2 544 82 1
Portugal [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
113 13 85 1 99 14 –
Italy [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
540 58 443 – 501 39 –
Switzerland [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
456 30 384 – 414 41 1
Russia and CIS [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
309 34 249 – 283 26 –
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Greece [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
223 15 171 – 186 37 –
Cyprus [email protected]
Total Professionals
FRICS MRICS AssocRICS Qualified Total
Trainee Associate Trainee
345 26 223 9 258 86 1
Figures from July 2018
Confidence through professional standardsRICS promotes and enforces the highest professional qualifications and standards in the valuation, development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards – bringing confidence to markets and effecting positive change in the built and natural environments.
Americas
Latin America [email protected]
North America [email protected]
Asia Pacific
Australasia [email protected]
Greater China (Hong Kong) [email protected]
Greater China (Shanghai) [email protected]
Japan [email protected]
South Asia [email protected]
Southeast Asia [email protected]
EMEA
Africa [email protected]
Europe [email protected]
Ireland [email protected]
Middle East [email protected]
United Kingdom RICS HQ [email protected]
DEC2018/DML/23184/GLOBAL
rics.org
