In this age of digitisation, like all industries, property valuation industry is also undergoing a significant transformation. Traditional valuation processes, which relied heavily on manual assessments and documentation, are being reshaped by digital tools, data analytics, and artificial intelligence. This shift is not just streamlining the process but also enhancing the accuracy, transparency, and efficiency of valuations. Let’s explore some of the key aspects on how technology is redefining the mortgage valuation landscape across the globe.
Data Integration and Enhanced Accuracy
One of the biggest challenges in traditional property valuation, especially in a developing country like India has been the fragmented nature of data. Valuers would often rely on limited or outdated information, which could lead to inaccuracies. Technology, however, is breaking down these data silos. Various initiatives by the state and central governments, such as Digital India Land Records Modernization Programme (DILRMP), Bhu-Aadhar, SVAMITVA, National Generic Document Registration System (NGDRS), Digitisation of Ready Reckoner rates, etc. are playing pivotal role in digitising the property data. With continuous digitisation, this will enable integration of vast datasets — ranging from property sales histories to geographic information systems (GIS), neighbourhood trends, and economic indicators — which will lead valuers having access to real-time, comprehensive data sets that will enable valuers to assess a more accurate and scientific value of a property.
AI and Machine Learning: Driving Intelligent Valuations
In developed countries where data transparency and adequacy is not a challenge, Artificial intelligence (AI) and Machine Learning (ML) are playing an increasingly pivotal role in property valuation. Companies like Zillow (USA), REalyse (UK), PriceHubble (Switzerland), CoreLogic (US & AUS) have already been using the latest of the technologies to redefine the property valuation. Machine learning algorithms are being used to analyse patterns from historical data to predict future trends, helping to assess a property’s potential appreciation or depreciation over time with an average confidence level of 80-90% in majority of the developed nations.
Remote Valuations and Virtual Inspections
The COVID-19 pandemic accelerated the adoption of remote technologies across industries, and valuation was no exception. In few cases the Indian valuers are using GIS data, virtual inspections using geo tagged videography as an alternative to in-person inspections; however the success rate of the same is not encouraging due to the lack of reliable data. The developed nations are resorting to more advanced technologies like inspection using drones, 3D scanning, and augmented reality. While these technologies are relatively new and will require more research and data to replace the traditional way of inspection, these technologies hold immense potential, especially in monitoring under-construction projects, assessing damages properties due to natural calamities/ fire, etc.
Blockchain: Ensuring Data Security and Transparency
Blockchain technology, though still in its nascent stages in the valuation industry, offers promising benefits for data security and transparency. Mortgage valuations involve the exchange of sensitive financial data between multiple stakeholders, including banks, valuers, and clients. Blockchain's decentralized ledger system ensures that all transactions are secure, traceable, and immutable. The Republic of Georgia is a country that has made significant strides in leveraging blockchain, technology for property valuation and land registry. Their system, known as the National Agency of the Property Registry (NAPR), has revolutionized the way property ownership and transactions are recorded and verified.
Conclusion: A Future-Ready Valuation Industry
Technology is fundamentally reshaping property valuation, making it faster, more accurate, and more transparent. As AI, big data, blockchain, and other technologies continue to evolve, they will offer even greater opportunities for innovation in the industry. However, human expertise will always be vital to interpret data, make judgment calls, and ensure ethical standards. The future of mortgage valuation lies in the seamless integration of human intelligence with technological advancements, creating a more dynamic and reliable industry ready to meet the demands of tomorrow's market.
At Valsight, we are embracing this evolution, leveraging cutting-edge technology to enhance our valuation processes and deliver unparalleled insights. By integrating advanced tools and data-driven strategies, we are not only staying ahead in a rapidly changing landscape but also setting new standards for accuracy and efficiency in the Indian valuation market. Embracing these technological advancements, Valsight is committed to reshaping the valuation industry and providing exceptional value to our clients.
