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Published 6 November 2019
Commenting on the launch of a new DAC Beachcroft-supported report by LIQUID REI, Tim Ryan, Partner and Head of Technology Law at DAC Beachcroft, said, “Property values, the way value is calculated, the fragmentation of the existing supply chain are just some of the changes that the valuations sector will experience from technological innovation.
“With data as an asset in itself, clarity over who owns what elements will be fundamental to effective management; as will the need for a valuations risk register and full data strategy. This report from LIQUID, sponsored by DAC Beachcroft, examines the future for property valuations and the implications for the real estate market.”
According to the report, property owners believe that data and technology will increasingly be a key driver of property value. 87% of those surveyed felt that data and technology will, in time, become an increasingly important factor in the value of a property itself.
Not only will property value be more data-driven but also the way it is calculated, with 88% of respondents believing that the valuation process of the future will be much more data-driven – both in terms of the volume and variety of data used. Indeed, how valuations providers use data and technology looks set to become a key factor in deciding which valuers to employ, with 92% stating it will become a more important factor in choosing who to use in the near future.
The report suggests a bright future for the valuations profession as the value of property becomes an increasingly complex and important topic, but does highlight some significant challenges that the whole sector will need to face. Keeping up with client needs, becoming disintermediated and adapting to changing skills are all highlighted, with one of the major challenges identified being trust. There are clear challenges about how data will be used and who owns it, with 71% of clients not believing that there is clarity around who owns the data.
Read LIQUID REI's report Property Valuations: A Time of Change here.