Valuers’ receptiveness to the application of artificial intelligence in property valuation

Abstract

Studies have shown that the level of valuation inaccuracy in Nigeria is higher than the acceptable international standard. This may be linked to the preference for traditional valuation approaches. This study investigates the readiness of Nigerian valuers to adopt the artificial intelligence (AI) property valuation techniques that have proven to be reliable and accurate in property valuation. A cross-sectional study was conducted via a web-based questionnaire survey to registered estate surveyors and valuers practicing in Nigeria. The collected data were analyzed and presented with descriptive statistics in percentiles and mean score, in addition to the chi-square analysis. The results show that more than half of the respondents are aware of the AI valuation techniques. However, the techniques are not used in practice. The low adoption of the AI techniques is attributed to professional bodies responsible for regulation of real estate practice and tertiary educational institutions in Nigeria, who were not proactive enough to promote their know-how and application. It was found that active collaboration between local professional bodies and similar international organizations on member training and development may improve the usage of the AI techniques. The study highlights the need for a paradigm shift in the Nigerian property valuation practice.

Keywords:

• Artificial intelligence
• property valuation
• valuers
• valuation techniques
• Nigeria

Acknowledgments

The authors sincerely acknowledge the Research Grants Council of Hong Kong (SAR) and the Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong, for providing financial and material support toward this research. The authors will also like to thank all the valuers that responded to the survey.