Appraisal:

Appraisal designations for appraisers in Latin America are categorized into local designations and international certifications.  The purpose of appraisal designations in Latin America is to ensure that the holder of such designation has a certain level of knowhow and experience in real estate valuation in Latin America and in real estate valuation in Costa Rica.  This thereby allows for market participants to quickly qualify and determine the quality of the valuation services they may contract.  Often, it is important to have both designations – an international designation and a local Costa Rican one, that allows for the appraisal to be used for local loans and banking or finance regulators, but also be accepted by investors on an international level.  Each office of LOGAN including the LOGAN Costa Rica office provides real estate valuation reports with both international and local designations. 

International 

International designations are more difficult to achieve than local designations, as they have longer experience requirements – and more difficult examinations.  In Costa Rica, there is a medium level of understanding of the international designations – there are few requirements of such designations required by real estate funds – or banks.  This knowledge is growing though – there increasingly are more foreign investors participating in the market – who have an understanding of international designations.   

MAI – Appraisal Institute (USA), AI Designations 

The MAI is considered the highest designation for appraisers in the US for the appraisal for commercial property.  There are not many MAI appraisers in Costa Rica, because the country is just starting to grow in terms of institutional real estate and institutional valuation needs.  This is changing however, most notably, Sugeval, the regulator of real estate funds in Costa Rica has recently changed the required valuation standard required for valuations to IVS (International Valuation Standard).  The requirements include experience, ethics, and rigorous educations requirements as well as tests.  This process often takes approximately 5+ years to achieve.  The examinations are in English – which makes it difficult, however no impossible for non-native English speakers.  Bryan L. Dragoo (MAI Appraiser Costa Rica, 2013) and Robert L. Dragoo (MAI Appraiser Costa Rica, 2017) both maintain the designation, and work at LOGAN Costa Rica. 

  • Designated Appraisers Costa Rica: 1
  • Real Estate Fund Required: Low
  • Bank Required: Low

RICS – Registered Valuer (UK): 

The Royal Institute of Chartered Surveyors is a globally recognized professional body for highly qualified professionals in real estate, construction, and infrastructure and is well recognized in the industry of real estate valuation globally and real estate valuation in Latin America.  This designation is well recognized in Europe/UK and globally and is often required by companies that have headquarters in the EU.  Unlike the Appraisal Institute, RICS publishes a valuation standard called the Red Book, which RICS valuers must adhere to.  The Red Book is often used as standard for real estate valuation in Latin America.    The designation of RICS registered valuer is held by Bryan L. Dragoo (RICS appraiser Costa Rica), and Robert L. Dragoo (RICS appraiser Costa Rica). 

  • Designated Appraisers Costa Rica: 1
  • Real Estate Fund Required: Low
  • Bank Required: Low

Regulated by RICS – Valuer (UK):

This designation is for firms which have RICS registered valuers.  It allows a firm to be recognized by RICS on a company level.  LOGAN Costa Rica is part of LOGAN which is a RICS Regulated firm (valuer) since 2019.  LOGAN is the 4th company in Latin America to achieve this designation, which is a great accomplishment. 

  • Designated Appraisers: Firm Designation
  • Real Estate Fund Required: Low
  • Bank Required: Low

Local:

Local designations are often regulated by a local organization who decides what requirements appraisers must achieve.

CFIA – The Colegio Federado de Ingenieros y Arquitectos is a non-state public organization that regulates the professional practice in architecture and engineering in Costa Rica, which ensures compliance with the basic regulations for professional practice in the country. CFIA has established certain regulations and codes, such as “Reglamento para la Contratación de Servicios de Peritajes y Avalúos de Bienes Muebles e Inmuebles”, which establishes that real estate appraisals must be carried out by CFIA members, in conformance with its regulations. In addition, national and international companies that carry out appraisals must be registered with the CFIA, and comply with the requirements established by this entity. LOGAN Costa Rica has been registered at CFIA since 2021 and has professionals who are members of this organization and who are qualified for professional practice of appraisal of real estate.   

IVS – International Valuations Standards are issued by the International Valuation Standards Council (IVCS), an independent, non-profit organization committed to enhance valuation profession quality. In Costa Rica, there is no regulation for appraisals; however, CFIA and state entities require that valuations must be comply with IVS and valuations must be carried out in compliance with international standards to guarantee the transparency and coherence of real estate valuation exercise.  

CPCECR – The Colegio Profesional de Ciencias Económicas de Costa Rica is a non-state public entity that supervises the profession of its members. Professionals incorporated into CPCECR can develop appraisals that are in the general realm of economic science – which includes financial valuations. For this reason, LOGAN is registered at Colegio Profesional de Ciencias Económicas and has professionals trained in the different economic specialties for use in the professional practice of financial appraisals.  

Consulting 

Real estate consulting in Costa Rica has very few designations.  The concept of market studies for real estate is a relatively new concept in Costa Rica, and the market is limited but growing.  Since the country has been in constant growth mode for 10+ years – developers have not needed detailed market studies to determine the feasibility of projects.  This is changing, as the economy in 2020 faltered, more companies would now order an office market study in Costa Rica or an industrial market study in Costa Rica, for example, because of the market uncertainty.   

MRICS – The Royal Institute of Chartered Surveyors does recognize consultants as specialists and experts in real estate consulting and valuation as MRICS.  LOGAN has 3 RICS designation achieved for real estate consulting in Costa Rica and 2 for real estate valuation.  LOGAN has deep knowledge and understanding in real estate consulting in Latin America, and the MRICS designation helps establish standards and legitimacy for such work.  The requirements for the MRICS are experience, a RICS – accredited degree, or 5 years of experience and a bachelor’s degree, or ten years of experience operating at a level of seniority, specialization, or in academia. 

ASTM – This is not a designation or certification, but a standard that is applied to Property Condition Assessments in Costa Rica.  The was created by ASTM, a material and building standards organization in the United States.  Costa Rica has been working with ATSM in aligning standards in other industries in Costa Rica.  LOGAN offers PCAs or Property Condition Assessments in Costa Rica and has done property condition assessments on some of the largest properties in Costa Rica including hotels, hospitals, office buildings and shopping centers.