31-10-2017

Big data in real estate: from manual appraisal to automated valuation

We developed a practical application of “big data” in combination with sophisticated modeling techniques, providing an automated, machine-based valuation model for the commercial real estate sector. Automated valuation models (AVM) are clearly beating traditional appraisals — the absolute error of the automated model now stands at 9 percent, which compares favourably against the accuracy of traditional appraisals, while the model can produce an instant value at every moment in time, at a very low cost. Read our full article in the Journal of Portfolio Management.

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Author: Nils Kok