Implementation Of International Valuation Standards In An Emerging Market - Threats And Opportunities:The Case Of Poland

Globalization and its accompanying international movements of capital significantly affect the real estate markets. For instance, they strengthen the trend towards creating consistent standards for asset valuation, including real estate. An expression of the trend is the International Valuation Standards (IVS). According to the IVS, property valuers operating in the emerging markets cannot disobey fundamental terms and rules within the commonly applied valuation principles. Their implementation becomes therefore an objective necessity. Regarding general definitions and rules, the National Valuation Standards (NVS) should evolve towards the IVS. Compared with the National Valuation Standards operative in Poland, the 7th edition of the International Valuation Standards is expected to bring in the following important changes: * to introduce a single definition of the market value. The fundamental and integral part of an appraisal process is the notion of the highest and best use of a property; * to indicate the replacement value as a method for arriving at the market value. // Both the changes are revolutionary for todayís community of property valuers in Poland. The paper aims to: * identify areas, where the effects of implementing the IVS will appear;* assess IVS implementation impacts on the evolution of market values of real estate, capital allocation and the use of real estate by investors, creditors, as well as property valuers, etc.; * indicate the directions of NVS modifications, as well as the pace of implementation of the changes. // The paper is built on four research methods: * an analysis and evaluation of the literature of the subject; * SWOT analysis; * a case study; * a questionnaire survey targeted to property valuers. // The first method allows to identify the scope of the changes, the second method indicates the weak and strong points of the implemented changes, as well as threats and opportunities. The third method, seeking the value of a postindustrial property using first property valuation methods used in Poland today and then the IVS rules, allows to estimate the effects of the changes, whereas the fourth method presenting opinions shared by the community of property valuers provides a ground for formulating a thesis about the pace of changes to be implemented.