The 2nd edition of the RICS global practice guidance “Comparable Evidence in Real Estate Valuation” is due to be published in the second half of 2026. Comparable evidence is the bedrock of all valuations whether looking at direct capital comparison or determining the appropriate market rent and yield in an investment valuation. The role of the valuer is to read the market, assess any appropriate and available comparable evidence to determine the market value of the subject property. All approaches use comparable evidence in some form. The overriding requirement of any market valuation is to “price to market”. That is to estimate the price that would be achieved for the property were it to be sold on the open market on the date of the valuation.
No good valuer would simply replicate the numbers from comparable sales and other data without further analysis. It may be that the market is static and thus prices will not have changed, or the market may be falling or rising. In all cases, the valuer assesses what data is available, including the impact of Environmental, Social and Governance (ESG) issues, to make a professional judgement as to price in the market today. All valuations need to be placed in an economic context. Comparable evidence is the start of the valuation process and not the sole contribution.
This talk will look at:
- The new RICS Guidance on Comparable Evidence in Real Estate Valuation
- The need to understand the dynamics of the market and to look at other “sign posts” to provide an estimate of Market Value
- What is considered to be comparable evidence in markets, or conditions, where recent transactional evidence is not available?
Nick French, Real Estate Valuation Theurgy, Property Education