Thought leadership
artificialintelligenceinpropertyvaluations
The debate surrounding artificial intelligence is now also affecting the property sector. Whilst AI models can process vast amounts of data at lightning speed, concerns are growing about the reliability and context of such ‘black box’ outputs. European regulations now set clear limits: for residential mortgages, the valuation must not be based solely on a model. The call for hybrid valuations – combining smart technology with human expertise – is therefore growing ever louder. Yet collaboration within the market appears to be proving difficult. This is a shame, because it is precisely this mix of human and machine that is crucial for reliable valuations. Not just for homes, but for all property segments.
Combining human and artificial intelligence
It is precisely this combination of human and artificial intelligence that enhances the quality of valuations. We advocate the use of Automated Valuation Modelling (AVM) when valuing homogeneous property, such as residential properties and housing portfolios, alongside the valuer’s own expertise. Artificial intelligence is not only important for residential property; this also applies to the valuation of, for example, offices, industrial premises, logistics property and retail property. By using data in combination with smart analytical techniques, the valuer can be increasingly supported in preparing the valuation.
Hybrid for all assets
It is true that AVMs are less suitable or not applicable to assets other than residential property. However, in our view, ‘hybrid’ goes beyond the mere use of an AVM in the valuer’s work. It is about the smart combination of sources, increasing the transparency and reliability of reference material, and linking those sources to the valuation report. This enables the valuer to analyse more effectively, work faster and, in combination with the on-site inspection, provide better insight into the valuation. As a result, they can increasingly take on the role of an advisor.
Valuations 5 times faster, better validated and 100% reliable
Hybride ensures that property can be valued faster, with better validation and 100% reliability.
Example
Envalue is at the forefront of commercial property valuation. A smart link to an inspection tool that can be used on-site, links to land registry information, zoning plan information, the Sustainability Index and an extensive star-rated reference database help the valuer to carry out valuations accurately and efficiently. Supplemented by AVMs, this ensures that we can value property and portfolios very effectively and quickly in accordance with current regulations.
The time is ripe. Hybrid valuations are needed. Combining technology with the valuer’s expertise provides better insight and accurate valuations. We invite the market to join us in shaping the future of the valuation market.
