Digital innovation and Real estate appraisal

Abstract

This research reviews the existing literature on the use of digital innovation in real estate valuation, focusing on three aspects.First, it analyses the factors that make the use of digital innovation increasingly relevant in the real estate sector and, more specifically, in the evaluation phase of assets. The need for innovation in the real estate market is highlighted, as the demand from investors for fast, reliable and objective appraisals.The second part reports the literature on digital innovations applied to valuation models, distinguishing between forecasting models for future market trends and assets-specific automated valuation models. This section focuses on the impact that new models have on the currently used approaches for value assessment.Third, the use of digital-based valuation models is investigated by analysing the context conditions. The review analyses the literature that correlates the reliability of the new models and the conditions of the real estate market in which they are used, especially in terms of information efficiency. Finally, the conclusions summarise the limits and potential of digital innovation in the field of valuation. Future directions are then identified.