Dubai Land Department revolutionises AI-based smart property valuation system

The technology employs advanced ML model algorithms to expedite the valuation process.

Real estate valuation is one of the most important services that global markets and economic sectors rely on for investment decision-making as well as for mergers, accusation activities, and minimisation of financial risks.

The traditional global real estate appraisal mechanism relies on meetings of a group of real estate experts to determine real estate prices based on their experiences in the market, following up on posts, and some other prices. This causes conflicts in the valuation processes as a result of differing opinions amongst members of the same committee. In addition, these committee meetings take up to several days, resulting in delays and lower levels of customer satisfaction.

To aid this, the Dubai Land Department (DLD) launched a smart property valuation system that revolutionises the international real estate market with its innovative predictive model based on artificial intelligence (AI) and machine learning (ML).

Named the Dubai Smart Property Valuation System, the tool is a pioneering application of AI technology that employs advanced ML model algorithms to expedite the valuation process. It generates precise predictions of property value by scrutinising millions of transactional data and property features, utilising DLD’s database integration with external systems that obviates the need for documentation.

The new system has significantly reduced the time required to generate a valuation certificate from three days to just 15 seconds. Additionally, the system has been developed in line with approved real estate valuation standards and global regulations, resulting in a 40% anticipated annual cost reduction for the valuation service.

Moreover, the introduction of the AI-supported data cleansing approach during the development and User Acceptance Test has also led to substantial improvements in data accuracy to 95% and AI prediction accuracy to 85%. These developments have resulted in higher customer satisfaction levels to 100% by 2022.

This success has been recognised by the Real Estate Asia Awards as DLD bags the Customer Service Innovation of the Year - United Arab Emirates category win. The prestigious awards programme honours the most innovative real estate developments and laud industry players in Asia Pacific that stand out in the market.