I. THE VALUATION
I.1 Regulatory Framework
| a) Is there a legal framework in your Member State for the valuation of real estate for lending purposes (loan origination)? If yes: • Is this framework specifically for the valuation of real estate for lending purposes or are provisions enshrined in a broader piece of legislation? • Is it limited to the transposition of European or International Standards or is it broader in nature? • Please provide references and indicate whether it applies to both residential and commercial property. If there are differences between both property types, please explain. |
yes Article 19 of the Mortgage Credit Directive (MCD) was transposed into Irish law through the European Union (Consumer Mortgage Credit Agreements) Regulations. In practice, residential property valuations undertaken for mortgage lending purposes are generally required by lenders to be prepared in accordance with recognised professional valuation standards, principally the RICS Valuation Global Standards (Red Book) or the TEGoVA European Valuation Standards (Blue Book). For commercial property, there is no equivalent statutory valuation framework; however, regulated lenders generally require valuations to be undertaken by appropriately qualified valuers in accordance with recognised international or European valuation standards. The Irish framework is largely centred on the transposition of European requirements and the application of recognised international and European valuation standards, principally the RICS Red Book and TEGoVA Blue Book. Additional requirements are primarily delivered through lender policies and professional self-regulation rather than through a broader statutory valuation framework. The principal references are: European Union (Consumer Mortgage Credit Agreements) Regulations 2016, which transposed Article 19 of the Mortgage Credit Directive into Irish law for residential mortgage lending. RICS Valuation Global Standards (Red Book). TEGoVA European Valuation Standards (Blue Book). Relevant prudential requirements applicable to regulated lenders, including the Capital Requirements Regulation (CRR) and associated EBA guidance. Residential Property: The Mortgage Credit Directive requirements apply specifically to residential property used as security for mortgage lending. In practice, lenders require valuations to be undertaken by appropriately qualified valuers in accordance with recognised valuation standards such as the RICS Red Book or TEGoVA Blue Book. Commercial Property: There is no equivalent statutory framework specifically governing commercial property valuations for lending purposes. However, regulated lenders generally require commercial valuations to be prepared by suitably qualified and independent valuers in accordance with recognised professional valuation standards, principally the RICS Red Book or TEGoVA Blue Book. The key distinction is that residential mortgage valuations are supported by a specific legislative framework arising from the Mortgage Credit Directive, whereas commercial valuations are primarily governed through lender requirements, prudential regulation and professional self-regulation. |
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| b) If there is no specific legal framework, is the valuation of real estate for lending purposes covered by other means, e.g. self-regulation, sector recommendations or supervisory guidance? | Valuation standards in Ireland are primarily governed through professional self-regulation. The two principal professional bodies are the Society of Chartered Surveyors Ireland (SCSI), in respect of RICS Red Book valuers, and the Institute of Professional Auctioneers and Valuers (IPAV), in respect of TEGoVA Blue Book valuers. |
| c) Do national valuation standards exist? Is there any cross-reference to European and/or International Valuation Standards (EVS/IVS)? | Ireland does not maintain a separate national valuation standard. The two principal professional valuation frameworks used are the RICS Valuation Global Standards (Red Book) and the TEGoVA European Valuation Standards (Blue Book). |
| d) How has the regulator in your Member State transposed Article 19(1) of the MCD regarding “reliable standards” for the valuation of residential property (into legislation or delivered through a professional body)? Indicate whether and how “reliable standards” are defined and whether and how the content of those standards are prescribed. | The transposition of Article 19(1) was undertaken by the Irish Department of Finance, which concluded that the RICS Red Book and TEGoVA Blue Book are acceptable valuation standards. Instructions are issued to valuers who meet the criteria of the respective standards schemes. Both standards adopt the International Valuation Standards (IVS), produced by the International Valuation Standards Council (IVSC). |
I.2 Valuation Bases & Methodology
| a) What valuation bases (Market Value, Mortgage Lending Value, etc.) are typically used in your Member State for the valuation of property for lending purposes (please disregard at this stage the specific requirements of Art. 229 CRR considering that the Property Value is not an independent basis of value). |
Market Value is the principal valuation basis used in Ireland for both residential and commercial property valuations undertaken for lending purposes. In practice, lenders generally require valuations to be prepared in accordance with recognised professional valuation standards, principally the RICS Valuation Global Standards (Red Book) or the TEGoVA European Valuation Standards (Blue Book), both of which adopt internationally recognised definitions of Market Value. Mortgage Lending Value is not used within the Irish market from a valuation perspective and is not a standard requirement for mortgage origination or secured lending valuations. |
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| b) Based on what definition? Please provide the definition and reference to where it can be located. |
Red Book - ‘Market Value’ définition is ; ‘the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing, where the parties had each acted knowledgeably, prudently, and without compulsion’. Mortgage Lending Value - A definition is set out in the European Union Capital Requirements Regulation (CRR) Article 4(74): ‘The value of immovable property as determined by a prudent assessment of the future marketability of the property taking into account long-term sustainable aspects of the property, the normal and local market conditions, the current use and alternative appropriate uses of the property.’ |
| c) In case other valuation bases are used in your Member State for the valuation of property for lending purposes, please specify the effect, if any, on the final valuation. | Alternative valuation bases are rarely used for lending purposes in Ireland. Market Value remains the dominant basis of value. |
| d) Depending on the valuation base used, which valuation approaches or methods (comparison, income, cost, etc.) are typically applied in your Member State to value properties for lending purposes in each category? |
The valuation approach adopted will depend on the nature of the property, the availability of market evidence and the valuation basis being applied. For lending purposes in Ireland, where Market Value is the predominant basis of value, the following approaches are commonly used: Sales Comparison Approach (Market Approach) Income Approach Residual Method Profits Method In practice, valuers will often use more than one approach as a cross-check, with the selection of the primary methodology determined by the property type, market evidence available and the requirements of the valuation instruction. For residential mortgage lending, the Sales Comparison Approach remains the most commonly adopted methodology, while commercial lending valuations frequently rely on the Income Approach supported by market evidence. |
I.3 Valuation Report: Form & Content
| a) Does the legal or professional framework in your Member State specific to the valuation of properties provide minimum requirements in terms of the form and content of the valuation report? If yes, please indicate what these minimum requirements are. |
There is no statutory format prescribed in Irish legislation for valuation reports prepared for lending purposes. However, recognised professional valuation standards establish minimum requirements regarding the form and content of valuation reports. In practice, lenders also frequently require valuers to complete institution-specific reporting templates for mortgage origination and secured lending purposes. For valuers operating under the RICS Valuation Global Standards (Red Book), the valuation report must contain sufficient information to enable the client to understand the valuation opinion and the basis upon which it has been prepared. |
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| b) Should the form and content of valuation reports be prescribed, are there differences between residential and non-residential properties? Please describe as appropriate. |
The RICS Red Book does not prescribe the wording of valuation reports, but it sets out the minimum information that must be included in both the report and the terms of engagement with the client. There are notable differences between residential and non-residential valuation reports. Residential mortgage valuations are generally more standardised, with reports often completed using lender-specific templates and relying primarily on comparable sales evidence. Non-residential (commercial) valuation reports are typically more detailed and may include analysis of occupational leases, rental income, yields, cash flows, development potential, market trends, ESG/sustainability considerations and asset-specific risks. Commercial reports frequently require the application of multiple valuation methodologies and a more extensive explanation of assumptions, inputs and professional judgement. |
| c) If the form or content of the valuation report are not prescribed, what form does the valuation report typically take? Please specify differences between residential and commercial property valuation reports. |
Where the form and content of valuation reports are not prescribed by legislation, the typical practice in Ireland is for reports to be prepared in accordance with recognised professional valuation standards, principally the RICS Valuation Global Standards (Red Book) or the TEGoVA European Valuation Standards (Blue Book). For residential mortgage lending, valuation reports are commonly completed using standardised templates provided by individual lenders. These reports typically focus on property identification, inspection findings, market evidence, key assumptions, material risks and the final opinion of Market Value. Commercial property valuation reports are generally more detailed. They typically include comprehensive analysis of the property, tenure, occupational arrangements, rental income, market conditions, valuation methodology, assumptions, ESG/sustainability considerations, risk factors and supporting evidence underpinning the valuation conclusion. |
I.4 Technology & Valuation
| a) Does the legal or professional framework in your Member State provide specific rules/guidance on the use of digital valuation tools (AVMs, Artificial Intelligence etc.)? If yes, what does this consist of and is it restricted to a particular type of property? Please specify whether there is a correlation with the requirements of Article 208(3a) CRR and of section 7.4 of GLOAM or whether the latter provisions are of stand-alone application in your Member State. |
Ireland does not appear to have separate domestic legislation prescribing a comprehensive, property-specific regime for the use of automated valuation models, artificial intelligence or other digital valuation tools. Their use is principally governed through: directly applicable EU prudential requirements, particularly the Capital Requirements Regulation; the EBA Guidelines on Loan Origination and Monitoring, as applied by supervised credit institutions; and the professional standards followed by qualified valuers, principally the RICS Red Book Global Standards incorporating the International Valuation Standards. |
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| b) For what purpose are digital tools and/or AI employed in your Member State? - Mortgage origination, monitoring and review of property values, revaluation etc. - Capital requirements, covered bond funding, securitisation transactions, mortgage portfolio risk management etc. |
For mortgage origination, the role of automated tools is more constrained because the institution and valuer must ensure that the valuation is fit for its lending purpose and based upon sufficiently reliable property-specific information. An AVM-generated estimate may form part of the process, but for example, under the Red Book, it does not become a compliant valuation unless a valuer applies professional judgement. Furthermore, all valuations produced under the RICS Red Book must identify and state the status of the responsible valuer. Restrictions on inspection, investigation or information must be agreed, documented and reported, and the instruction must be declined if the limitations prevent a professionally adequate valuation. For monitoring and revaluation, Article 208 (3a) CRR expressly permits advanced statistical or mathematical methods to monitor property values and identify properties requiring revaluation, subject to the prescribed controls. Accordingly, automation is particularly suited to portfolio-level monitoring and exception identification rather than being treated automatically as a substitute for an individual valuation |
| c) Scope of digitisation: Please determine the scope of automated and digitised tools in your Member State. Are they confined to data collection, do they deliver reliable property values or are they even used to produce full or partial valuation reports including description of locations, infrastructure, building characteristics etc.? If the latter is the case, is internal data used or it is permitted to purchase data from an external data provider? |
The scope of digitisation in Ireland extends beyond basic data collection. Digital tools may support: retrieval and verification of property and market information; analysis of transactions, rents, yields and indices; geospatial and locational analysis; property matching and comparable selection; statistical estimation of value; portfolio monitoring and identification of outliers; automated calculations and report population; and drafting or assembling parts of valuation documentation. Nevertheless, there is an important distinction between an automated output and a professional valuation. The Red Book defines a valuation model as a quantitative implementation of a method that converts inputs into outputs used in developing a value. |
| d) Quality requirements: How are the reliability of the tools and their outputs assessed, e.g. by controlling the inputs, back-testing, supervision and/or plausibility checks by valuers etc.? |
Professional scepticism is important. The Red Book therefore requires the valuer to apply professional scepticism, take reasonable steps to verify the information relied upon, maintain an adequate audit trail and record inputs, calculations, investigations, analyses, assumptions, professional judgements and quality-control procedures. The ultimate control is the responsible valuer. Each Red Book valuation must be prepared by, or under the supervision of, a named appropriately qualified valuer who accepts responsibility for it. |
| e) Do you foresee an increase in the use of automation and digitisation of property valuation processes in the future? Please describe potential technological developments which could impact the valuation profession and accelerate its transformation, notably through the use of AI. | Valuers may spend less time on manual data assembly and repetitive report drafting, and more time on instructing and challenging models, verifying source data, interpreting outputs, investigating exceptions, assessing property-specific risks and explaining conclusions to clients and regulators. |
I.5 ESG, climate risk, transformation risk
| a) How are ESG factors and climate risk taken into consideration in the valuation process? Do Market Values and/or Mortgage Lending Values reflect the ESG characteristics of properties? |
The Red Book identifies a range of potentially relevant ESG considerations, including: Energy efficiency and energy ratings. Carbon emissions and decarbonisation requirements. Flood, heat, drought and other physical climate risks. Building adaptability and resilience. Biodiversity and environmental constraints. Building safety and governance-related risks. However, valuers are required to distinguish between ESG factors that are demonstrably reflected in market behaviour and those that are not. |
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| b) Are there rules in your Member State requiring assessment of EU Taxonomy alignment of a property in the valuation report and the subsequent impact of compliance/non-compliance on property values? | At present, there is no specific Irish valuation standard mandating that valuers must provide a formal EU Taxonomy alignment assessment for every property valuation. |
| c) Are digitised tools and AI applied in order to capture and/or measure the impact of ESG factors and climate risk on property values? | Valuation standards such as the Red Book recognise the use of valuation models, advanced analytics, automation and AI-assisted processes, provided that they are appropriately governed and subject to professional judgement. The Red Book requires valuation models to be tested, documented and monitored, and specifically states that no AVM or AI-generated output can constitute an IVS-compliant valuation without the additional application of professional judgement by a qualified valuer. |
I.6 Market Initiatives
| a) Please describe any market initiatives which have been undertaken in your Member State (including cross border initiatives) and which have promoted market best practices and/or transparency of valuation practices. |
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II. THE VALUER
II.1 Regulatory Framework
| a) Is property valuation a regulated profession in your Member State (through legal, regulatory or statutory rules)? | No. Property valuation is not a statutorily regulated profession in Ireland, and the title “valuer” is not protected by legislation. Rather, the profession operates principally through professional self-regulation and market requirements. |
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| b) Is the use of the title of valuer protected in your Member State? If yes, by whom? | No |
| c) If the title of valuer is not protected in your Member State, how do lenders ensure that they work with ‘qualified’ valuers? Are there ‘professional’ certifications for property valuers in your Member State? If yes, please name them. | Valuers instructed by lenders must be Red Book or Blue Book valuers. |
| d) Is the regulatory or professional framework the same for all valuers, whether they value residential and/or commercial property? Or are there differences? Please describe as appropriate. |
The overarching professional framework is broadly the same for both residential and commercial valuers. In practice, valuers are expected to comply with the same core professional standards relating to ethics, independence, competence, continuing professional development, conflicts of interest and valuation methodology, including the requirements of the Red Book or the Blue Book. However, differences arise in the competencies, experience and technical expertise required for different asset classes. While a valuer may be qualified to undertake both residential and commercial valuations, professional standards require valuers to possess the necessary knowledge, skill and experience relevant to the specific property type and valuation assignment. |
II.2 Qualification and Independence
| a) The qualified valuer • How has the regulator in your Member State transposed the requirements of Article 19(2) of the MCD, of Articles 229(1) and 208(3b) of the CRR regarding the instruction of “professionally competent valuers” or valuers who possess the “necessary qualifications, ability and experience” (transposition through legislation or by self-regulation)? Indicate how professional competence and qualification requirements are prescribed. |
The transposition recognises RICS Registered Valuers and TEGoVA valuers as ‘competent valuers’, having regard to their accreditation criteria and the auditing arrangements in place to assess the quality of valuations. |
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| a) The qualified valuer • If professional competence, qualification, ability and experience requirements are not prescribed, what is general practice with regard to professional qualifications? |
A property-related degree (Level 8 or above), together with Chartered Valuation Surveyor status. The APC assessment is conducted by SCSI/RICS, typically following two to three years of professional experience, and includes a written submission, presentation and interview. Membership of the RICS Valuer Registration Scheme (VRS) is also generally required. |
| b) The independent valuer • How has the regulator in your Member State transposed the provision in Article 19(2) of the MCD or in Articles 229(1) and 208(3)(b) of the CRR regarding “sufficient independence from the credit underwriting process” or “independence from the loan processing and loan decision process” (through legislation or delivered through self-regulation)? Indicate whether and how the requirement is defined and whether and how it is prescribed. |
As above |
| b) The independent valuer • If “sufficient independence” is not prescribed, what is general practice to ensure the valuer is unbiased and not subject to undue pressure? |
This is set out in the Red Book, which states that valuers “must at all times act with integrity, independence and objectivity, and avoid conflicts of interest and any actions or situations that are inconsistent with their professional obligations”. |
II.3 External vs. Internal
| a) Does the legal or professional framework in your Member State specific to the valuation of property for lending purposes lay down rules for banks and lenders as to whom they may use to value properties? • If yes, do credit institutions have the possibility to employ both internal and external valuers? • Is one type of valuer typically employed more frequently than the other? |
As above Yes. Credit institutions employ third-party external valuers to independently value properties. Then often, the main large banks employ internal valuers to review draft valuations by the third-party external valuers before sign-off. Internal valuers also intermittently review existing third-party valuations between valuation instructions. As above. |
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| b) If there is/are no legislation/rules regarding the use of external and internal valuers, what is typical practice? | For new lending, external valuers are required. |
II.4 Professional Indemnity Insurance
| a) Does the legal or professional framework in your Member State specific to the valuation of property for lending purposes require: • Valuers to have professional indemnity insurance cover? • Lenders to use only valuers covered by professional indemnity insurance? |
Valuers to have professional indemnity insurance cover? Yes Lenders to use only valuers covered by professional indemnity insurance? Yes |
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| b) If there are no such requirements, how are lenders/valuers covered for the risk? • Is/are there legislation/rules in your Member State determining the responsibility of the valuer vis-à-vis his client? If yes, please describe the legislation/rules and the responsibility of the valuer. |
III. VALUATION & CAPITAL REQUIREMENT
| a) Property Value How are the Property Value requirements of Article 229(1) CRR transposed in your Member State: • by calculating the Mortgage Lending Value • by Market Value adjustments ◦ adjustments determined by the valuer on a single property by property basis ◦ adjustments determined by the credit institution on a portfolio level based on internal historic market data series ◦ adjustments determined by the credit institution on a portfolio level based on data provided by external research institutes or data providers |
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| b) Monitoring of property values Has the regulator in your Member State laid down criteria regarding "more frequent monitoring where the market is subject to significant changes in conditions"? |
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| b) Monitoring of property values Has the regulator in your Member State laid down criteria regarding “advanced statistical or other mathematical methods” complying with the technical requirements of Article 208(3a) CRR? |
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| b) Monitoring of property values Please provide an overview of the different statistical methods/tools complying with Article 208(3a) CRR applied by lenders in practice. |
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| c) Review of property values and revaluation • Has the regulator in your Member State laid down criteria which define “review” of the property valuation? If so, what are the minimum and maximum periods within which a review must be conducted? Based on which criteria? |
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| c) Review of property values and revaluation • Has the regulator in your Member State laid down criteria which define “material decline relative to general market prices”? How are ESG-related considerations assessed as an indicator for a material decline? |
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| c) Review of property values and revaluation • Please provide a description of how ‘reviews’ are carried out in your Member State, e.g. by a new full-size valuation report, a desk-top valuation, a valuation certificate, a plausibility assessment or alike. What criteria are used to determine how the reviews are to be carried out? |
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| c) Review of property values and revaluation • For the calculation of average values in accordance with Article 229 (1)(e) CRR in the context of upward revisions of values, are there any guidelines from regulators or lenders addressing the data points to be used and the comparability of properties? Please indicate whether there are requirements from regulators or lenders for ‘sufficient data’ and ‘unequivocal increases of value’. |
IV. VALUATION OF THE COVER POOL
| a) Are valuation rules for cover assets provided at national level in accordance with Article 6(5a) CBD? Are they provided by national covered bond legislation or by professional guidance/standards? | |
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| b) What valuation bases apply for the valuation of cover assets (Market Value, Mortgage Lending Value)? | |
| c) In the case of Market Value valuations, are there any prudential or longer term/sustainable features of the property to be considered? If yes, to what extend? | |
| d) How is the requirement that the valuation shall be carried out by a valuer who possesses the necessary qualifications, ability and experience transposed in your Member State (Article 6(5b) CBD)? Are there specific qualification requirements for valuers? | |
| e) How is the requirement that the valuer shall be independent from the credit decision process transposed in your Member State (Article 6(5c) CBD)? | |
| f) Are there differences in valuation rules and/or qualification requirements with regard to the property type (residential vs. commercial properties) or to the loan amount? | |
| g) Are there specific monitoring, review and revaluation requirements for cover pool assets at national level (see Article 129(3) CRR referring to Article 208 CRR)? | |
| h) Do regulators of your Member State provide a waiver from the limitation of calculating average values for cover assets in case of upward revision of values (Article 129(3) second subpar. CRR)? |
V. OTHER
REGULATORY HARMONISATION AND NATIONAL DIVERGENCES
| 1. What challenges does your Member State face in harmonising with EU regulations (e.g. legal, technical, market-related)? |
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DATA QUALITY, TRANSPARENCY AND COMPARABILITY
| a) What data sources are typically used by valuers in your Member State, and to what extent do they comply with Article 208(3a) of the CRR? | |
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| b) What measures have been taken to improve transparency and comparability of valuation data within your Member State? | There are statutory Commercial Lease and Residential Property Price Registers through which property transaction information can be viewed at www.psr.ie |
| c) Is there a central database or platform for sharing valuation data in your Member State? | As above. There is no central database covering all asset types. |
EDUCATION, TALENT PIPELINE AND PROFESSIONAL DEVELOPMENT
| a) What training programs or continuing education opportunities are available for property valuers in your Member State? | CPD and training are available from the Society of Chartered Surveyors Ireland for Registered Valuers in Ireland. Training is also available through RICS. |
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| b) Is there collaboration between universities, professional bodies, and regulators to ensure a sustainable pipeline of qualified valuers? | There is collaboration between professional bodies and universities to ensure a sustainable level of new entrants to the sector. Recent SCSI research, available at https://scsi.ie/employment-outlook-for-the-surveying-profession-2026-2029/ highlights future surveying needs and opportunities. |
| c) How does the EU regulatory environment influence the development and attractiveness of the valuation profession? | The attractiveness of the profession can be enhanced through EU regulation that promotes higher professional standards and, in turn, recognises the important role of valuers in the built and natural environment. |
FUTURE TECHNOLOGICAL AND REGULATORY DIRECTIONS
| 1. What technological developments are expected to impact valuation processes in your Member State over the next five years? | AI |
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