Boost efficiency: Utilise new developments in the appraisal sector for more precise property values
Facing complex real estate decisions and need quick, impartial evaluations? The latest developments in the appraisal domain offer data-driven solutions. Discover how you can benefit from AI, digital twins, and new standards.
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The topic briefly and concisely
Artificial intelligence (AI) and AVMs are revolutionising property valuation through the rapid analysis of large data sets, enabling over 20% efficiency gains.
Regulatory changes such as the ImmoWertV 2021 and the Annual Tax Act 2022 require up-to-date market values and adjusted valuation factors, e.g. higher material value factors (up to 1.8).
ESG criteria are becoming a decisive value factor; the EU taxonomy and the goal of climate neutrality by 2050 are driving the demand for sustainable properties.
How reliably can you assess the true value of your property today? Given dynamic markets and new regulatory frameworks, an accurate valuation is crucial. This article highlights the latest developments in the field of valuation. You will learn how technologies such as Artificial Intelligence (AI) and the consideration of ESG criteria can increase the accuracy and efficiency of valuations by over 20%. Benefit from well-founded insights for your next property decision.
AI Revolution: Automated Valuation Models (AVMs) and Big Data are shaping property valuation
Artificial intelligence fundamentally transforms property valuation. Automated Valuation Models (AVMs) analyse millions of records in seconds. These systems use machine learning for precise valuations. AVMs can reduce the valuation time by up to 70%. The accuracy of forecasts is continuously improved through big data analysis. AI also processes unstructured data like images and text for condition assessments. The integration of AI leads to over 25% more efficient business processes. These technological advances enable faster and more objective valuations, which is particularly evident in online valuation services. The innovations in the valuation sector are thus strongly driven by AI, opening up new possibilities for data-based decisions.
Digital twins and advanced data analysis: The next level of precision
The creation of digital twins for real estate is a significant innovation. These virtual models integrate various data sources such as land registry data and 3D scans. Such models can reduce maintenance costs by 15%. The analysis of real estate photos through deep learning automatically identifies building types and standards of fittings. This supports semi-automated property viewings, saving up to 40% of time. The challenge remains the availability and standardisation of data for widespread use. Nonetheless, these technological trends in the real estate industry offer enormous potential for more detailed and accurate valuations. Linking this data creates a new dimension of transparency and traceability.
Regulatory Adjustments: ImmoWertV and Tax Laws as Drivers for Reassessments
The legislator is also pushing ahead with new developments in the field of valuations. The Annual Tax Act 2022 led to higher property valuations starting from 1 January 2023. The provisions of the Valuation Act were adapted to the Property Valuation Ordinance (ImmoWertV). For inheritance tax, the current market value is now used as the basis. The material value factor for single and two-family houses increased from 0.5-1.5 to 0.8-1.8. The ImmoWertV 2021 aimed at a more uniform valuation for tax purposes. Although it did not bring any fundamental new content, it unified terms and procedures. An important change is the mandatory specification of linear age depreciation. These changes in the valuation industry require precise knowledge of the current legal situation. A professional valuation, like the one offered by Auctoa, takes these complex requirements into account and can help you avoid tax disadvantages.
ESG Integration: Sustainability as a New Value Factor in Property Valuation
Sustainability aspects (Environmental, Social, Governance - ESG) are gaining significant influence. The EU taxonomy classifies environmentally sustainable economic activities, including in the building sector. Properties that meet ESG criteria can experience a value increase of up to 10%. The focus is often on ecological risks ("E"), especially energy efficiency. The EU aims for climate neutrality by 2050, requiring a reduction in CO2 emissions by 55% by 2030. ESG scoring evaluates properties during ongoing operations, with consumption and emissions accounting for about 40% of the indicators. These future trends in the valuation sector show that sustainability is no longer a niche topic. For future-proof valuation, the consideration of ESG factors is essential, which the ImmoGPT chat from Auctoa can support exploratively.
Outlook: Increased efficiency and new requirements shape the future of assessment
The real estate industry expects stabilization by 2025, despite global uncertainties. Over 80% of industry experts anticipate consistent or increasing profitability. Data centers and energy infrastructure properties are considered top investment targets for 2025. The use of AI in real estate companies increased from 35% to 51% within one year. Digitalization enables more efficient management and more accurate market forecasts. These new developments in the valuation sector lead to significant efficiency improvements. The challenges lie in data quality and the acceptance of new technologies. The future belongs to hybrid models that combine human expertise with machine precision.
Conclusion: Navigate safely through change with data-driven assessment
The new developments in the valuation sector, driven by AI, Big Data, and ESG criteria, offer enormous opportunities. They enable more precise, faster, and more transparent property valuations. Companies that adapt these technologies can increase their efficiency by over 20%. The regulatory adjustments require up-to-date expertise. Take advantage of Auctoa's expertise and our AI-supported tools like the ImmoGPT chat to make informed decisions. This way, you can maximise the value of your properties and minimise risks in a changing world.
neuentwicklungen-im-bewertungsbereich
Additional useful links
Das Statistische Bundesamt provides information on the construction price index and the real estate price index.
Das Statistische Bundesamt offers detailed tables on house prices and building land.
The Deutsche Bundesbank offers an indicator system for the residential real estate market.
BORIS is the official information system for standard land values in Germany.
The ZIA/EY Digitalisation Study examines the progress of digitalisation in the real estate industry.
The DVW publishes the "immoblick 2" publication with insights into geodesy and geoinformation.
VDP Research offers a study on the digitalisation of real estate valuation.
The Empirica Institute provides quarterly values of the Empirica real estate price index.
The Federal Ministry of Finance offers a tool for the allocation of purchase prices of properties.
FAQ
How can I benefit from the new developments in the assessment area?
You benefit from faster, more precise, and more transparent assessments. Use AI-powered services like those from Auctoa to make data-driven decisions, minimize risks, and optimally assess the value of your property, also with regard to ESG and current legislation.
Does AI completely replace the human reviewer?
No, AI does not replace human appraisers but rather supports them. AI tools like AVMs provide quick data analysis and standard evaluations, but the expertise of an experienced appraiser remains essential for complex cases, individual nuances, and final validation.
What role does data quality play in AI-driven assessments?
Data quality is crucial. AI models are only as good as the data they are trained on. Inaccurate or incomplete data can lead to erroneous evaluations. Therefore, continuous maintenance and validation of the data base, as operated by Auctoa, is very important.
Have online property valuations become more reliable due to the new developments?
Yes, through the use of AI and Big Data, many online reviews have become notably more reliable, especially for standard properties in well-documented locations. They provide a quick initial assessment. However, for complex properties or legally secure valuations, an individual expert assessment, as offered by Auctoa, is still advisable.
How does the EU taxonomy affect my property valuation?
The EU taxonomy defines criteria for environmentally sustainable investments. Properties that meet these criteria (e.g., high energy efficiency, low CO2 emissions) tend to be valued more highly and are more future-proof. An assessment by Auctoa can take these aspects into account.
What does a property valuation cost that takes these new developments into account?
The costs vary depending on the type of property, the scope of the valuation, and the provider. AI-supported preliminary valuations are often available at a low cost or as part of a service package. For a detailed, bespoke report that takes all new developments into account, we at Auctoa are happy to provide you with a non-binding quote.
