THE FUTURE OF PROPERTY VALUATION: AVMs AND CAMAs IN THE ERA OF AI

Abstract

The authors analyse Automated Valuation Models (AVMs) integrated with artificial intelligence (AI), positioning them as pivotal in creating a fair, sustainable, and interconnected urban real estate sector. As urbanisation advances, AVMs powered by AI are increasingly central to property valuation, offering data-driven insights that transform traditional appraisal methods. Unlike conventional inspections, AI-enabled AVMs process large datasets for property value estimation, aligning them with urban planning needs. This study highlights AVMs' potential to advance urban real estate practices while addressing challenges in ethics, transparency, and governance. By focusing on the synergy between technology and valuation, AVMs emerge as key in developing adaptive urban planning. Additionally, the paper proposes an ethical framework for AI use in urban contexts, ensuring alignment with professional standards and public trust, serving as a roadmap for practitioners and policymakers in integrating AI responsibly into urban property valuation.