Contemporary valuation practice in a changing professional landscape : Technology, regulation, and the evolving role and skill set of the valuer

Abstract

Unprecedented change is taking place in real estate valuation due to advancements in technology, changing regulatory environments, and evolving client expectations. Drawing on insights gained by the author in his work within the Royal Institution of Chartered Surveyors (RICS) Valuation Team, this paper explores the future direction of valuation practice. Specifically, it addresses the use of artificial intelligence (AI) and automated valuation models, together with the growing importance of environmental, social, and governance criteria for valuation purposes. Additionally, it considers the expanding scope of assets that require valuation and the evolving role and skill set of the valuer in responding to these changes. The paper demonstrates that the application of technology not only improves the professional capabilities of valuers but also allows them to focus more of their time on high-level decision making, risk assessment, client service, and the provision of strategic advice. It also examines the practical issues that arise from the increased use of technology in relation to valuation governance, professional accountability, and managing risks associated with the use of technology. By demonstrating how innovation in technology can be applied in a way that maintains consistency with existing valuation principles and global valuation standards, this paper provides insight into how the valuation profession can respond to emerging expectations of its stakeholders while maintaining confidence in valuation outputs. The impact of regulatory frameworks is also examined, including the application of the ‘RICS Valuation-Global Standards’ (Red Book) and RICS’ ‘Responsible Use of AI in Surveying Practice Standard’, which clarifies governance, accountability, and transparency requirements related to the responsible use of technology in valuation practice. The author concludes that the future of valuation should be seen as an opportunity for valuers to combine professional judgment with technology and increasing regulatory change to provide clients with accurate and reliable outcomes for both traditional and emerging asset classes. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.