Italy increasingly advanced in Europe on property valuations

Updated guidelines for the valuation of properties guaranteeing credit exposures. News for hotels, shopping centers and agro-industries

With a mortgage market that has exceeded 376 billion euros in September 2018, up 2,3% compared to last year, quality and efficiency of property valuations are key elements. In this way, the Guidelines for the valuation of properties guaranteeing credit exposures came to the third update in light of the further adaptation to the latest European and international standards, in particular the Mutual Directive implemented in the Consolidated Banking Act, and to the Bank's 285 Circular. of Italy with reference to the professional qualifications of the experts.

Relevant news in this new edition is the introduction of principles for the evaluation of hotels, shopping centers and agro-industries (so-called special assets), and an important focus on the energy efficiency of buildings and their impact on market value.

With the central objective of a constant strengthening of the transparency and efficiency of the real estate valuation market, the new Guidelines were presented today in Rome during the Abi "Credit to 2018" conference and are the result of the elaboration carried out with the Orders and Professional Colleges of Graduated Surveyors and Surveyors, Engineers, Agrotechnics and Agrotechnics graduates, Architects, Landscapers, Planners, Conservators, Agronomists and Forestry Doctors, Industrial Experts and Graduate Industrial Experts, Land Surveyors and Graduate Agricultural Experts, Assovib (Association of real estate valuation companies) Tecnoborsa, members of the specific Technical Table set up at Abi on the subject, with support for this edition of Assoimmobiliare, Rics, Tegova, Fiabci and Isivi. With the sharing of Confedilizia on the contents of the Guidelines.

The process of revising the Guidelines is further refined by means of a wide-ranging collaboration between operators aware of the "centrality" of real estate valuations for the stability of the financial and economic stability of the credit sector.

Here is a set of guiding principles and requirements to which the experts can refer for an increasingly precise estimation of the market value of the properties that will be placed as collateral for the provision of mortgages.

Market value, Expert's code of conduct, assessment procedures and methods, market comparison method, financial method, cost method, special asset valuations, energy efficiency: these and many other principles that will allow real estate valuations to be carried out according to parameters of maximum clarity and transparency, aiming at enhancing the real estate guarantee with a positive impact also in terms of efficiency in recovering the loan disbursed, favoring the maximization of the value of the residual assets eventually allocated to the debtor.

Italy increasingly advanced in Europe on property valuations

| Economics |