A report released this week by Liquid REI shows the growing importance of data to the property valuation process with 88% of clients thinking that it will become more data driven in the future and 92% believing that how valuers use data and technology will become an important factor in choosing who they work with.
The report, ‘Commercial Property Valuations: A Time of Change’, surveyed leading valuation clients within the property sector. The report highlights how important it is for valuers to embrace data as we move forward into a digital era.
Dan Hughes of Liquid REI and author of the report, comments: “A strong theme emerging from the report is the important role of data in future valuations, both the way we value a building and the value of the property itself. There is a clear need for valuers to embrace the use of data to win work in the future, but there is also a feeling that at times, they are being slow to do so.”
Some other key findings include:
- Property valuers face some significant challenges over data ownership in future, with only 29% of those surveyed believing that there was clarity over who owned the data produced in a valuation report
- There is a strong appetite amongst purchasers of property valuations to consider new solutions with 72% open to lower priced, technology-based alternatives
- Data and technology will increasingly influence the actual value of a property – 87% of our survey agreed, or strongly agreed that data and technology will become an increasingly important factor in the value of a property in future
Bob Courteau, CEO of Altus Group, added; “Data and technology will play an increasingly critical role in the future of our industry. Greater data usability and continued acceleration of technology-enabled insights will present tremendous opportunities for valuers and advisors alike to deliver heightened value to clients and stakeholders.”
Mark Wynne-Smith, Global Head of Valuation Advisory JLL, is embracing the change and challenge stating: “The consensual view of our clients, which concurs with the conclusions of this paper, is their desire to embrace the forthcoming technological changes and to work with service providers who will actively support them to take advantage of the opportunities this revolution presents.”