Real estate valuation is an analytical process aimed at determining the market value of properties based on factors such as location, size, regulations, and market trends. It is considered a cornerstone of real estate development, financing, and investment, as it provides results that influence decisions related to selling, buying, and mortgaging.
With technological advancement, artificial intelligence has become an essential part of real estate valuation. Its techniques rely on analyzing market data, locations, proximity to services, and supply and demand movements.
This contributes to automating tasks and analyzing data accurately to support smart decision-making, reducing human intervention and saving time and costs.
Some countries, such as the United States, the United Kingdom, and Australia, have begun adopting smart real estate valuation systems. An example is Bricked AI, which launched a platform that provides accurate reports and analyses within seconds thanks to image analysis technologies and historical data.
Despite its advantages, artificial intelligence faces several challenges, including the lack of legal recognition of its reports, the absence of accountability in case of errors, its need for massive amounts of data that may raise privacy concerns, and the possibility of bias in valuations if the data is unbalanced.
Nevertheless, artificial intelligence contributes to improving valuation accuracy, property management, and cost reduction. In places such as Dubai, these technologies have helped increase valuation accuracy by 85% and investment returns by 20%, in addition to reducing operating expenses and improving the forecasting of market opportunities and potential risks.
