In an industry long shaped by tradition, relationships and intuition, commercial property is undergoing a seismic transformation. At the epicentre of this shift lies technology and, more specifically, artificial intelligence (AI). While the digital revolution has touched nearly every facet of the property sector, perhaps no area is seeing more profound change than valuations.
For decades, valuations have relied heavily on manual processes: site visits, comparable sales analysis, local market expertise, and broker sentiment. But as the sector grapples with greater data availability, increasing demand for transparency, and a push toward operational efficiency, the traditional playbook is being rewritten.
AI is enabling a step-change in the way commercial properties are valued. Rather than relying solely on historical comps and appraiser judgment, machine learning models can now analyse vast troves of data, ranging from foot traffic patterns and satellite imagery to economic indicators and ESG performance metrics.
These models can identify hidden correlations and predict future trends with impressive precision. Valuation professionals using these tools are not just getting faster results, they’re getting deeper, more nuanced insights.
Consider the example of an AI model trained to assess risk-adjusted returns in mixed-use developments by incorporating real-time retail sales, demographic shifts, and climate resilience scores. This kind of granular, dynamic analysis was unthinkable a decade ago.
Moreover, cloud-based platforms and APIs are making these tools accessible across the value chain, from investors and lenders to brokers and portfolio managers, fostering a more integrated and collaborative valuation process.
While valuations may be a flashpoint, AI and technology are reshaping the property landscape more broadly:
However, adoption of AI in the property sector is not without hurdles. Data quality remains a challenge, particularly for older buildings or under-digitised markets. Regulatory frameworks and valuation standards are struggling to keep pace with technological capabilities.
According to Deloitte’s 2025 Commercial Real Estate Outlook report, many real estate companies acknowledge that there is work to be done before their data is “AI-ready”, with only 14% of respondents believing that their companies have well-structured data collection and management processes in place and robust privacy policies.
The digital tide does, however, appear to be turning. Eighty-eight per cent of respondents to Deloitte’s survey are planning to use digital technologies to radically improve business performance over the next 12 to 18 months. Fifty-one per cent say their main objective of increased investment is to use AI to automate processes, second only to improving the speed of dataflow for fast decision-making.
Forward-thinking firms that embrace these tools can not only gain competitive advantage, but they may also help future-proof the industry against volatility, inefficiency, and obsolescence.
But for all AI’s potential advantages, the human element still matters – certainly at Innes England. No AI model can replace the local expertise of a seasoned valuer or the nuanced negotiation skills of an agent. As such, the future of valuation lies in augmentation, not automation, where AI empowers professionals to make smarter, faster, and more informed decisions, not replaces them.