Do you own property abroad or are you planning to sell to international investors? Different valuation rules can distort the true value by up to 15%. Understand how international standards provide clarity and trust, and maximise your return.
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The topic briefly and concisely
International standards (IVSC, RICS, TEGoVA) create a consistent and transparent foundation for real estate valuation and strengthen the trust of global investors.
The latest versions (valid from 2025) incorporate ESG factors and sustainability as measurable value drivers in the evaluation.
A report prepared according to international standards can significantly reduce the marketing time and facilitate access to international capital.
In a globalised world, property portfolios do not stop at national borders. For heirs, owners, and investors in German-speaking regions, it is increasingly important to present the value of a property uniformly and comprehensibly across borders. While national procedures such as the ImmoWertV in Germany provide a solid foundation, international capital markets and buyers demand a common language. This is precisely where international valuation standards come into play. They create a comparable and transparent basis that strengthens investors' trust and allows transactions to proceed with up to 20% less friction loss. This article explains the key global frameworks and shows you how to use them for your real estate decisions.
Why global evaluation standards are indispensable
The real estate market has long been operating on a global scale, with an annual cross-border investment volume of over 300 billion euros. This development calls for a universal method of valuation. International standards create a unified foundation for investor confidence. They reduce uncertainties and enable the objective comparison of property portfolios across different countries. Organizations like the International Valuation Standards Council (IVSC) are committed to establishing these global principles. The application of these standards is a clear signal of quality and significantly accelerates negotiation processes. Unified regulations are therefore the key to accessing international capital.
The three pillars of international assessment
Three organisations significantly shape international standards in property valuation. Each has its own focus, but they all aim for transparency and comparability. Their regulations serve as guidelines for surveyors worldwide.
Here is an overview of the key players:
IVSC (International Valuation Standards Council): Defines overarching global principles (IVS) and ensures uniform definitions, such as market value. Over 180 organisations worldwide are members.
RICS (Royal Institution of Chartered Surveyors): Publishes the practice-oriented 'Red Book', which serves as a detailed guide for surveyors and sets high ethical standards. The first edition was published back in 1976.
TEGoVA (The European Group of Valuers' Associations): Develops the 'European Valuation Standards' (EVS), which are closely linked to EU law and particularly consider regulatory issues like energy efficiency.
Together, these three sets of rules form a robust system that ensures quality standards for appraisals on a global level. Their convergence is an ongoing process that continually improves valuation practice.
IVS 2025: The New Global Standard
On 31 January 2024, the IVSC released the latest version of the International Valuation Standards (IVS), which will be mandatory from January 2025. This update addresses key market developments. A new focus is on the integration of ESG factors (Environmental, Social, Governance) into valuation. This makes sustainability a measurable value factor. In addition, the requirements for the data basis and the use of valuation models have been specified to accommodate increasing digitization. Since 31 January 2025, the IVS have been freely accessible to further promote their worldwide application and increase transparency. This realignment ensures that international valuation strategies meet future market requirements.
RICS Red Book: Practical Implementation of Global Standards
The RICS Red Book is considered the gold standard for the practical application of valuation principles and is used by surveyors worldwide. The latest edition, which also takes effect from January 2025, has been closely aligned with the IVS 2025. The Red Book places particular emphasis on the professionalism and ethics of the valuer. It demands comprehensive documentation and absolute transparency in the valuation process. A central element is the avoidance of conflicts of interest, which can increase confidence in the result by over 25%. For international sales, a Red Book-compliant valuation is often a prerequisite for foreign investors.
EVS 2025: The European Focus on Sustainability and Regulation
The European Valuation Standards (EVS), also known as the 'Blue Book', place a clear emphasis on harmonisation with EU legislation. The tenth edition, effective from January 2025, directly incorporates the requirements of the European Green Deal into the valuation methodology. A building with poor energy efficiency must now be assessed with a measurable discount. This has a direct impact on market value and financing. Furthermore, the EVS define clear rules for the valuation of securities within the framework of the EU Capital Requirements Regulation (CRR). For property owners in the EU, this means that an EVS-compliant valuation significantly facilitates negotiations with banks. The standards help in calculating the land value internationally while complying with EU directives.
National versus international evaluation: What are the differences?
Although German methods like the Ertragswertverfahren under ImmoWertV and international approaches such as the ‘Income Capitalisation Approach’ are based on similar principles, there are significant differences. International methods are often more focused on cash flows and the perspective of a global investor. They take market fluctuations and return expectations into account in a more dynamic way.
The main differences are:
Forecast period: International DCF analyses often use a detailed forecast period of 10 years, while national methods sometimes work with perpetuities.
Capitalisation rate: The derivation of the interest rate internationally is more directly linked to capital markets activity, which can lead to higher volatility.
Transparency: The RICS Red Book requires explicit disclosure of all assumptions, which may exceed German requirements.
ESG factors: The new IVS and EVS explicitly integrate sustainability risks as value drivers, something not yet as established in ImmoWertV.
Understanding these country-specific differences is crucial for a successful transaction.
internationale-standards
The application of international standards is not extra work but an investment in the long-term value of your property. For owners and heirs in the German-speaking region, this offers tangible advantages. An IVS- or RICS-compliant appraisal can reduce the marketing time by up to 30%. It creates a shared basis of trust with potential buyers and financiers from abroad. Additionally, you minimise the risk of valuation reductions during the due diligence phase. Wondering how your property is assessed according to these global standards? A digital companion like Auctoa provides you with an initial data-driven assessment according to international logic. Get in touch now without obligation or test our ImmoGPT for an initial analysis.
Fazit: Global language for local value
Do I need an appraisal according to international standards to sell my property in Germany?
If you are only selling to German buyers, an appraisal according to national standards (ImmoWertV) is usually sufficient. However, if you are targeting an international audience or it is a commercial investment property, an appraisal according to RICS or IVS standards creates significantly more trust and can expedite the process.
Are international appraisals more expensive?
The effort may be slightly higher, as additional analyses and more detailed documentation are often required. However, the investment often pays off with a smoother sales process, a wider range of potential buyers, and potentially better sale prices. Digital tools, such as those provided by Auctoa, can help conduct initial analyses cost-effectively.
What does 'REV title' mean?
REV stands for 'Recognised European Valuer'. It is a certification from TEGoVA awarded to appraisers who are qualified in accordance with the European Valuation Standards (EVS). The title signals a high level of expertise that is recognised across Europe.
How do I find a qualified appraiser for an international valuation?
Look for certifications like RICS (identifiable by the 'MRICS' or 'FRICS' designation) or the TEGoVA REV title. These appraisers are proven to be familiar with international regulations. Alternatively, digital valuation platforms like Auctoa offer data-driven analyses based on international methods.
Additional useful links
International Valuation Standards Council (IVSC) provides a comprehensive overview of the global valuation standards essential for consistent value determination.
Royal Institution of Chartered Surveyors (RICS) provides detailed standards and guidelines that serve as practical guidance for surveyors worldwide.
Bundesfinanzministerium provides information on double taxation agreements relevant to international real estate investments.
Deutsche Industrie- und Handelskammer (DIHK) offers information on real estate law abroad, which is important for cross-border transactions.
FAQ
Do I need an appraisal according to international standards to sell my property in Germany?
If you are selling exclusively to German buyers, an appraisal according to national standards (ImmoWertV) is usually sufficient. However, if you are targeting an international group of buyers or if it is a commercial investment property, an appraisal according to RICS or IVS creates significantly more trust and can speed up the process.
Are international evaluations more expensive?
The effort may be slightly higher as additional analysis and more detailed documentation are often required. However, the investment often pays off through a smoother sales process, a broader buyer reach, and potentially better sales prices. Digital tools such as those from Auctoa can help conduct initial analyses cost-effectively.
What does 'REV-Titel' mean?
REV stands for 'Recognised European Valuer'. It is a certification by TEGoVA, awarded to valuers who are qualified according to the European Valuation Standards (EVS). The title indicates a high level of expertise that is recognised throughout Europe.
How do I find a qualified appraiser for an international valuation?
Look for certifications such as RICS (recognizable by the addition 'MRICS' or 'FRICS') or the REV title from TEGoVA. These appraisers are proven to be familiar with international standards. Alternatively, digital valuation platforms like Auctoa offer data-driven analyses that are based on international methods.
