8. Valuation Model Valuation is one of the most important parts of the real estate industry. Without valuation we cannot determine the value of properties and the worth of rents. Because of that reason, the valuation model is as PropTech sector defined. It cannot belong to any other sectors or be defined as part of any sectors in the PropTech market. Property valuation is an integral part of the housing industry that is long overdue for improvement in various ways. Automated Valuation Model is a mathematical or artificial intelligence-based computer software that can predict residential property prices based on the housing characteristics. The prediction accuracy of an AVM depends on the available data and the backbone calculation mechanism within an AVM. AVMs are characterised by the use and application of statistical and artificial intelligence techniques. Automated valuation models (AVMs) are mathematical models, which, together with appropriate computer software and databases of property information, are used to provide real estate valuations. AVMs are categorized into at least five types. These are hedonic models, econometric forecasts, ‘intelligent’ systems, house price index models and tax-assessed value models. There are 4 companies which are operative in the property management sector. They offer 17 services and 22 products. The business areas are: AVMs, classic valuation models, data trading, analytics, platform as a service, software as a service and consulting. Swiss PropTech companies in the valuation model sector;
Source: PropTech Academy, PropTech Switzerland, 2021
