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The Evolution of PropTech in the Valuation Sector

PropTech has been reshaping the property industry for decades, driving efficiency, automation, and smarter decision-making. But while advancements have revolutionised many aspects of real estate, valuation remains one of the least tech-enabled areas.

Early Beginnings of PropTech


The concept of PropTech began to take shape in the 1980s, with pioneers like Focus, which provided property information, and KEL, which specialised in residual valuations. These companies laid the groundwork for the technological advancements that followed, demonstrating the potential for data-driven solutions in property management and valuation.

Rapid Growth and Market Expansion


Over the last two decades, investment in PropTech has surged. Between 2020 and 2021 alone, funding in the sector grew from £347 million to £1.6 billion, marking a 360% increase. This rapid expansion has led to the emergence of numerous PropTech startups aiming to disrupt traditional real estate practices. However, while PropTech has transformed many areas, valuation remains a sector with significant resistance to technological change.

The Necessity of Deep Industry Knowledge


One of the key challenges in PropTech development is the lack of deep sector knowledge among many technology-driven firms. A successful PropTech solution must not only introduce innovation but also address the nuanced, sector-specific challenges professionals face daily. Many companies fail because they prioritise broad, automated solutions without understanding the complexities of the valuation process.


For example, Automated Valuation Models (AVMs) seem like an obvious solution from a technological perspective. However, valuation professionals understand that comprehensive data sets are not always available to support AVMs across all property types and locations. Instead, PropTech solutions must focus on streamlining processes such as data gathering, report writing, and formatting, rather than attempting to replace the professional judgement of valuers.

Slow Adoption in Valuations


Despite the overall rise of PropTech, valuations remain one of the least tech-enabled areas within the property sector. Research highlights that within the property sector, valuations teams specifically have the lowest rate of PropTech adoption. This is largely due to the disconnect between traditional valuation practices and the assumptions made by technology developers. Many existing PropTech solutions have attempted to replace rather than support valuers, leading to slow industry uptake.

The Role of Valos in Modernising Valuation


Recognising these challenges, Valos was founded by surveyors who had firsthand experience of the inefficiencies in the valuation process. Unlike many PropTech firms that approach the sector from a purely technological perspective, Valos was built by industry experts who understand the intricacies of valuation work.


Valos focuses on automating lower-value tasks in valuation report production, allowing valuers to dedicate more time to their core expertise: property valuation. By streamlining data collection, report formatting, and administrative processes, Valos enhances efficiency without compromising the professional judgement that remains essential to accurate valuations.


By leveraging technology intelligently and addressing the real pain points faced by valuers, Valos ensures that technology acts as an enabler working alongside professionals rather than attempting to replace them. This approach ensures that the benefits of technology are realised without eroding the critical human expertise at the heart of property valuation.

The evolution of PropTech has reshaped many aspects of the property industry, but the valuation sector has been slower to adapt. A key reason for this is the need for deep industry knowledge in developing effective solutions. While many PropTech firms have struggled to gain traction in valuations, or even attempt to create solutions, Valos has taken a different approach, one that acknowledges and respects the expertise of valuation professionals. By focusing on automation where it adds value and retaining the essential human elements of the process, Valos is helping to modernise valuation without undermining its fundamental principles.

 

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