Building Information Modeling Potential for an Enhanced Real Estate Valuation Approach Based on the Hedonic Method

Yamani, Siham El; Elmir, Mohammed; Hajji, Rafika

doi:10.2495/bim190261

Cited by 13 publications

(11 citation statements)

References 21 publications

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“…Property valuation should be undertaken considering the 3D nature of the houses since the real world is 3D in nature. To be more specific, the concept of value originates from intrinsic features associated to the properties as 3D objects and external factors related to the 3D environment (El Yamani et al, 2019). With 3D data modelling and visualization, buildings and houses could be represented in a 3D context.…”

Section: Bim and Property Valuationmentioning

confidence: 99%

“…Indeed, 3D features significantly affect the value of the properties from both structural and visual aspects. Hence, 3D modelling and 3D GIS should be used for the collection of data and information on different value-related 3D features to establish the required data base for advanced AVMs (El Yamani et al, 2019). The literature indicates a growing trend in utilizing 3D models for valuation purposes since they are a rich source of useful semantic and geometric information on different parameters related to the properties (Mete et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

“…Hence, it could be considered as a rich source of information for valuation purposes (El Yamani et al, 2021). Some scholars have tried to introduce or use BIM for property valuation practices (Arcuri et al, 2020;Celik Simsek and Uzun, 2021;El Yamani et al, 2019;Su et al, 2021). However, BIM benefits for different stages of valuation process and its integration to advanced valuation procedures have not been fully investigated.…”

Section: Introductionmentioning

confidence: 99%

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A Framework to Integrate Bim With Artificial Intelligence and Machine Learning-Based Property Valuation Methods

Jafary

Shojaei²,

Rajabifard³

et al. 2022

ISPRS Ann. Photogramm. Remote Sens. Spatial Inf. Sci.

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Abstract. Property valuation is of extreme importance since variations in the real estate market enormously influence people’s life. The main goal of Automated Valuation Models (AVMs) is to calculate the market value of a large number of properties with an acceptable accuracy. The Hedonic Price Model (HPM) is the most widely used AVM for the valuation purposes. Despite its simplicity, ease of use and straightforwardness, HPM lacks the capability to address the non-linear relationships between different value-related factors. Hence, researchers have developed other state-of-the-art property valuation methods based on the advancements in computer science including Artificial Intelligence (AI), Machine Learning (ML), computer vision and deep learning. Design, development, and validation of such advanced AVMs require establishment of a database including data on the different influential factors. Two types of factors are used in the literature, including textual and visual features. Reliable data sources are required for the implementation of AVMs since the accuracy of the provided valuations is definitely linked to the reliability of the used real estate databases. Building Information Modelling (BIM) provides precise information on different components of properties. Although some scholars have tried to use BIM for property valuation, BIM benefits in different valuation procedures have not been fully investigated. Hence, this paper provides a framework that consider BIM capabilities to be integrated with different stages and processes in property valuation, especially in relation to advanced AVMs based on AI and ML.

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Section: Bim and Property Valuationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

A Framework to Integrate Bim With Artificial Intelligence and Machine Learning-Based Property Valuation Methods

Jafary

Shojaei²,

Rajabifard³

et al. 2022

ISPRS Ann. Photogramm. Remote Sens. Spatial Inf. Sci.

View full text Add to dashboard Cite

show abstract

“…Some research has been done about the use of BIMs in property valuations. Yamani et al experimented with a prototype based on the hedonic price method in order to enhance real estate valuation [51]. Yu and Liu are among the first to experiment with the integration of GIS and BIM for real estate valuation [52].…”

Section: Research Backgroundmentioning

confidence: 99%

Automated Valuation Methods through the Cost Approach in a BIM and GIS Integration Framework for Smart City Appraisals

et al. 2020

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The principle behind sustainable city movements is represented by the idea of “good living”, which is the possibility of having solutions and services that allow citizens to live in an easy, simple, and enjoyable way. Policies for urban quality play a central role in the slow cities manifesto, often suggesting the use of Information and Communication Technologies (ITC) in the development of interactive services for citizens. Among these, an interesting possibility is to offer citizens digital real estate consultancy services through the implementation of automated evaluation methods. An automated appraisal action—which is already complex in itself owing to the need to collect data in a consistent, standardized, but also differentiated way so as to require the adoption of real estate due diligence—collides on the operational level with the concrete difficulty of acquiring necessary data, much more so since the reference market is dark, atypical, and viscous. These operational difficulties are deepened by the epistemological nature of the appraisal discipline itself, which bases its methodology on the forecast postulate, recalling the need to objectify as much as possible the evaluation from the perspective of an intersubjective sharing argument. These circumstances have led, on the one hand, to the definition of internationally accepted uniform evaluation rules (IVS, 2017) and, on the other, to the testing of automated valuation methods aimed at returning computer-based appraisals (AVM). Starting from the awareness that real estate valuation refers essentially to information and georeferences, this paper aims to demonstrate how real estate appraisal analysis can be further improved through information technology (IT), directing real estate valuation towards objectivity in compliance with international valuation standards. Particularly, the paper intends to show the potential of combining geographic information systems (GISs) and building information models (BIMs) in automated valuation methods through the depreciated reproduction cost. The paper also proposes a BIM-GIS semi-automatic prototype based on the depreciated reconstruction cost through an experimentation in Rende (Italy).

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“…Property valuation should be performed in a 3D space since real estate value is the association of indoor elements related to the property as 3D objects (e.g., volume, height) and 3D elements from the property's outdoor environment (e.g., view, shadowing, pollution) [1]. Hence, property value is the process of estimating the amount of which the property will be exchanged in the market [2].…”

Section: Introductionmentioning

confidence: 99%

3D Variables Requirements for Property Valuation Modeling Based on the Integration of BIM and CIM

et al. 2021

Self Cite

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The growing rate of urbanization and vertical urban development has aroused the significance of geo-related variables for property units disposed vertically within the same building. Among these, 3D indoor physical and outdoor environmental variables are impacting the property value for each building unit. However, in the literature, the identified 3D variables, by using hedonic pricing models (HPM) for property valuation, are mainly restricted to 3D visualization. Their use in 3D simulation for an accurate evaluation of the property value is still limited. Furthermore, their value is often defined for a specific valuation purpose (e.g., taxation). This paper aims to investigate 3D variables with a significant impact on property value, to combine them with 3D technical requirements and to be integrated in a future valuation model. Moreover, their 3D spatial and non-spatial elements are analyzed to identify which variables can be provided from 3D city models and building scale elements. To accomplish this, the potential of 3D building information modeling (BIM) and city information modeling (CIM) in property valuation is examined. From indoors; BIM/IFC (Industry Foundation Classes) models are the main data sources for structural and living quality variables. While from outdoors, environmental variables and the surrounding building’s information are provided from 3D city models (CityGML).

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Building Information Modeling Potential for an Enhanced Real Estate Valuation Approach Based on the Hedonic Method

Cited by 13 publications

References 21 publications

A Framework to Integrate Bim With Artificial Intelligence and Machine Learning-Based Property Valuation Methods

A Framework to Integrate Bim With Artificial Intelligence and Machine Learning-Based Property Valuation Methods

Automated Valuation Methods through the Cost Approach in a BIM and GIS Integration Framework for Smart City Appraisals

3D Variables Requirements for Property Valuation Modeling Based on the Integration of BIM and CIM

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