Total 603 words used.
Importance of Real Estate Valuation
Real estate valuation is a global trend that supports economic sectors. All global markets rely on a reliable real estate valuation process for different reasons, including but not limited to:
- Supporting investment and M&A activity
- Underpinning financial reporting
- Contributing to de-risking markets and fostering financial stability
- Determining the capital adequacy of financial institutions
- Establishing taxation
Description & Values:
Given the global importance of real estate valuation service, Dubai Land Department decided to benefit from the Fourth Industrial Revolution by establishing the first governmental, global artificial intelligence-based system for real estate valuation successfully launched in September 2020, providing instant, reliable and robust valuation that emphasises speed and accuracy. Leading Dubai Real Estate market to a primary position in trust and transparency.
The model analyze millions of transactions, along with property features to establish the most accurate property valuation. Integrating Dubai Land Department database with external systems that eliminates the need for any required documents, while utilizing the highest standards of security, efficiency, and ease of use.
Innovation & achievements:
Having benchmarked with leading countries in AI, various valuation fields, and online researches, Dubai Smart Valuation is the first global, paperless, AI-based 24/7 property valuation service that does not require human involvement, eliminating any human bias or conflicts in opinions that may have occurred during traditional valuation processes. The most distinct feature in the system is that it does not take more than five seconds, especially when comparing it with other real estate valuation processes worldwide.
The new model incorporates the latest approved real estate valuation standards and global regulations. It also utilises the data of real estate transactions and valuations in Dubai from the past five years. In addition to these data, DLD database also consolidate data from multiple systems such as rental data, building classification data, and external data from our strategic government and private partners such as real estate developers, Dubai Municipality and planning authorities in Dubai. More than 20 million information is utilised through the UAE’s open data, covering various areas related to influencing real estate values, such as the availability of transportation and educational facilities as well as amenities, which contribute to building a successful machine-learning model.
Impact
There is a positive impact for government sector, which has led to a reduction in workload, a reduction in paper consumption, and an increase in productivity, saving on resources, such as printers, paper and document storage rooms. This has also contributed to reducing carbon emissions to 22% and service costs by 23%, saving almost AED 10 million annually. Customer confidence in real estate laws, legislation, regulations and regulations applied in the Dubai real estate market also improved as a result to 88%, ranking Dubai 36th in the JLL Global Real Estate Transparency Index – 'Semi-Transparent' category.
The percentage of real estate speculation was also reduced to 11% following an analysis and monitoring thousands of transactions, with an annual value of AED 220 billion.
Beneficiaries now receive services much faster than before — within five seconds instead of days and without having to visit any service offices using Dubai Land Department Smart App “Dubai Rest”, especially as each visit costs time, money, and effort. As a result, customer satisfaction is now at 100%.
The service does not only affects the real estate market but also covers other sectors, such as financial and insurance sectors through valuating a property before property mortgage and/or insurance process.
Extending its reflection to real estate investment sector by helping investors to make the right decision.
Finally, the judicial sector is benefiting from the service by resolving any real estate dispute and bestowal procedures.
