Benefits and limitations of automated valuation models in the real estate industry

Automated Valuation Models (AVMs) are transforming real estate valuation – positioned between data-driven efficiency and established principles of market valuation. But where do genuine opportunities lie? And where are the clear limitations?

This working paper explores the potential, constraints, and practical fields of application of AVMs across the entire real estate life cycle. It establishes a shared understanding of key terminology, presents practice-oriented examples, and provides a well-founded professional classification of technological developments.

For everyone who seeks to understand – and actively shape – the future of real estate valuation.