New Ways of Valuation - Opportunities through Digitalization

The challenge of real estate valuation lies primarily in the attempt to simulate the market for valuation purposes using the limited information available. The tools given to a valuer for this purpose are definitely in need of improvement, because far too often the valuer has to resort to subjective assumptions and estimates made by himself.

Advancing digitization makes it possible to break new ground and circumvent the information inefficiency of the real estate market with the help of huge amounts of data from closely related areas. This makes it possible for the first time to determine important valuation parameters such as the discount rate on the basis of facts instead of retrograde estimates.