Valuers today operate in an increasingly interconnected environment, where assets, clients and regulatory expectations often span more than one jurisdiction.
Even when a valuer works entirely in their domestic market, international influences now shape how valuation reports are scrutinised, benchmarked and relied on.
This reinforces the need to adhere consistently to clear, internationally recognised valuation standards alongside the legal and regulatory requirements of the jurisdiction in which they are working.
The most recent edition of RICS Valuation – Global Standards (Red Book Global Standards), which took effect on 31 January 2025, reflects this evolving environment.
The latest edition strengthens requirements around data quality, valuation modelling, environmental, social and governance (ESG) considerations and the responsible use of technology.
These revisions align Red Book Global Standards with the latest International Valuation Standards and respond to the evolving expectations of clients, lenders and regulators.
Framework supports consistency across markets
Red Book Global Standards exist to promote confidence in valuation across all markets. They provide valuers with a consistent professional framework that sets expectations around independence, objectivity, evidence handling and reporting.
This framework does not override local legislation or local technical standards. Instead, it operates alongside them, helping to ensure that valuations are both globally credible and locally compliant.
This dual alignment is increasingly valuable. Clients and auditors often compare valuations across countries, even when the underlying regulatory or market conditions are very different.
Red Book Global Standards help to bridge these differences by establishing a common language and a shared understanding of good practice.
Requirements around modelling transparency, data governance and ESG reporting reflect the expectations of international stakeholders, who now rely more heavily on well‑documented and clearly reasoned valuation work.
Enhancing credibility and trust
Market conditions vary significantly between jurisdictions. Some lack comprehensive transactional evidence, while others have highly structured regulatory environments that can materially influence value outcomes.
Zoning restrictions, environmental obligations or tax rules may materially affect investment decisions and valuation conclusions. A clear understanding of these local factors is therefore essential to ensure that valuations accurately reflect market conditions.
Without a consistent application of professional standards, these variations can make valuation outcomes difficult to interpret or compare.
Red Book Global Standards address this by requiring valuers to demonstrate appropriate use of evidence, explain their rationale clearly and provide transparent justification for key assumptions and judgements.
This makes valuation reports more understandable and defensible, both locally and internationally.
Navigating dual compliance
One of the key responsibilities for any RICS registered valuer is ensuring compliance with both Red Book Global Standards and the legal and regulatory requirements of the jurisdiction in which the valuation is carried out.
These two sets of obligations are not alternatives. They work together and both must be satisfied for a valuation to be considered reliable and compliant.
Where there is a direct conflict, local legal requirements take priority. However, Red Book Global Standards still apply in full unless compliance is legally impossible.
Local practice differences alone do not remove the obligation to comply. Any unavoidable departure from the standards must be clearly identified, justified, communicated to the client and documented.
Conflicts between local and global requirements most commonly arise in areas such as:
- statutory definitions of value bases
- mandated methodologies
- compulsory reporting formats
- inspection or investigation requirements
- jurisdiction-specific tax or regulatory valuation rules.
As an example, some jurisdictions require specific valuation bases for lending or tax purposes that may not align with international norms. Others prescribe specific methodologies or reporting structures.
These requirements must be followed but they must also be considered within the Red Book Global Standards framework from the outset of the instruction.
Where a conflict is unavoidable, Red Book Global Standards require valuers to record it in both the terms of engagement and the valuation report.
This includes explaining the nature of the conflict, the relevant local requirement, the section of Red Book Global Standards affected and how the conflict has been addressed.
This level of transparency protects both the valuer and the client and helps readers understand the basis on which the valuation has been prepared and conclusions reached.
Clear documentation is also critical when valuations are reviewed by auditors, regulators or courts.
A valuation that clearly explains its compliance considerations, sets out the reasoning behind key decisions and records any departures is far more defensible than one that simply reflects local practice without explanation.
The latest Red Book Global Standards place a greater emphasis on transparency of evidence, clear modelling assumptions and justification of professional judgement, all of which help ensure that the valuation can withstand external scrutiny.
'Where there is a direct conflict, local legal requirements take priority, but Red Book Global Standards still apply'
Maintaining dual competence
Dual compliance also reinforces the importance of appropriate competence. A valuer can only identify and manage potential conflicts between local requirements and Red Book Global Standards if they have a sound understanding of both.
This requires familiarity with relevant legislation, regulatory frameworks and local market practice, alongside an up‑to‑date understanding of Red Book Global Standards.
The standards make clear that valuers must accept instructions only where they have the necessary technical skills, experience and local knowledge.
Because many valuation assignments now involve international investors, multinational lenders or cross-border reporting requirements, valuers increasingly need to understand how Red Book Global Standards apply, even when operating within a single jurisdiction.
By following Red Book Global Standards alongside local requirements, valuers provide clients with confidence that their valuations are properly grounded in internationally recognised professional standards without losing local relevance.
Dual compliance requires active consideration. It is not sufficient to assume that compliance with one framework automatically satisfies the other.
The valuer must identify the relevant obligations, understand how they interact and ensure that the valuation satisfies both.
A valuation cannot be credible internationally if it does not comply locally, and it cannot be defensible locally if it ignores global professional expectations.
The purpose of Red Book Global Standards remains constant, but the environment in which valuers operate continues to evolve.
The inclusion of requirements relating to ESG, modelling, data governance, AI and technology reflects the changing nature of valuation practice and the expectations of clients and regulators.
Despite these developments, one principle remains unchanged. Valuers must remain competent in the markets in which they operate and apply professional judgement with clarity and care.
By doing so, and by complying with both Red Book Global Standards and local legal requirements, they can continue to deliver valuations that are reliable, consistent, trusted and withstand scrutiny.
This article is the third in a series to mark the 50th anniversary of Red Book Global Standards. The series will look at how RICS' valuation framework is applied in a selection of non-UK jurisdictions and reflect on five decades of Red Book Global Standards more broadly.
Discover the new RICS Member App: CPD on the go
RICS has introduced a refreshed CPD approach that prioritises meaningful, high-quality learning that genuinely benefits your work and is tailored to your specialism, career stage, and the real-world challenges you face.
The new app makes logging CPD simpler and more intuitive, so you can focus on the development that matters to your practice.
