The new European Valuation Standards for Real Estate

Published:
14/11/2024
Published in:
News

The National Association of Appraisers of Serbia announced the release of the new European Valuation Standards for Real Estate (hereinafter: “EVS 2025”), which will take effect on January 1, 2025. EVS 2025 provides updated criteria for property valuation in line with the latest EU regulations. These standards serve as a guide for real estate appraisers across Europe and include guidelines for assessing the market value of real estate. Appraisers must adapt their methods to include comprehensive analyses of environmental impact, energy efficiency, and other factors that affect the long-term value of a property. EVS 2025 aims to harmonize procedures across the EU, facilitating investment and the development of the real estate market.

Some of the most significant innovations include:

  • Within EVS 6 – “Valuation and Energy Efficiency,” a methodology has been introduced that the appraiser must follow to determine market value in the context of EU legislation, where rapid improvement in energy efficiency of properties is mandatory.
  • In EVGN 2 – “Fair Value for Financial Reporting,” provisions on revised capital requirements have been defined in detail, including a new “property value” that includes “prudently conservative valuation criteria.”
  • The new guideline EVGN 4 – “Proportion of Value Between Land and Buildings,” when valuing agricultural assets, includes all aspects, such as climate change, technology, and data.

Although EVS 2025 is primarily intended for European Union member states, the Republic of Serbia may adopt it as part of its regulations through the process of harmonization with EU legislation. This means that Serbian appraisers and institutions could apply these standards to align their methods with European practices, especially for valuations involving foreign investors or international institutions. This approach could make domestic valuations more acceptable and recognizable in the European market.

 

Share on

Scroll