News in 2024

Commission 9 in Cyprus, Pafos

April, 2024, city, Naopolis University

Workshop on artificial intelligence and the use of automated valuation modelling (AVM) in property valuation and tax assessment

A brief Report

An ideal place: Cyprus

At the end of April 2024, the first "AVM Workshop" took place on the wonderful island of Cyprus. During this two-day workshop, the focus was primarily on the principles and basics of using artificial intelligence in the context of property valuation. The focus was primarily on Mass Appraisal, Automated Valuation Models (AVM), and the challenges and innovations within this framework, with particular attention to the benefits of AVMs for transparent real estate markets. Over the two days, we explored mass valuation in the context of human versus artificial intelligence, reflecting on past experiences and considering future directions in mass appraisal. We also examined challenges related to data management in mass appraisal and reviewed numerous case studies involving taxation and mass appraisals from an international perspective. The crucial question we sought to answer was what the near future holds in terms of advancements in mass appraisal, automation of valuation, and the role of technology in their evolution.

The workshop was a complete success, as all participants were able to recognise time and time again. No-one was in any doubt that this workshop would have to be repeated and it is becoming apparent that it will be held again next year at around the same time in Cyprus.

It was with great pleasure that the organisers, Associate Professor Malgorzata Renigier-Bilozor from the Institute of Spatial Management and Geography/The Faculty of Geoengineering (University of Warmia and Mazury, Poland) and Associate Professor Artur Janowski from the Institute of Geodesy and Civil Engineering/The Faculty of Geoengineering (University of Warmia and Mazury, Poland) and Dr. Thomas Dimopoulos, MRICS, Managing Partner of AXIA, Assistant Professor in Real Estate (NUP), Visiting Lecturer (CUT) and IVSC Europe Board Member, realised that a large number of excellent experts were ready to present at this workshop.

Amazing speakers from the USA, UK, Greece, Cyprus, Poland etc.

Professor Malgorzata Renigier-Bilozor (PL) and Richard Grover (UK)

In his welcome address, Peter Ache, FIG, emphasised how important this workshop is for the positioning of the FIG with regard to the use of artificial intelligence in valuation, property market monitoring and also for the simulation of market and price effects in connection with the United Nations SDGs. "We are shaping the world of tomorrow," says Ache.

Peter Ache (DE)

The following speakers were welcomed as keynote speakers:

Alexander Aronsohn, Technical Director, International Valuation Standards Council (IVSC), gave an online presentation on the IVSC's stance on the use of AVMs in valuation.
Peter Ache, Chairman of Commission 9, Valuation and the Management of Real Estate of the FIG presented the project of his period: "Transparency in The Property Market More Than Necessary, but a Major Challenge
Patrick Alesandrini, Immediate Past President of the International Association of Assessing Officers and currently working as the Chief Deputy Property Appraiser for one of the largest counties in Florida, in the United States; presented on the history and development of mass appraisal in North America
Varnavas Pashoulis, Acting Director of the Lands and Surveys Department, Ministry of Interior, Cyprus Republic

Varnavas Pashoulis (Cyprus)

In addition, a number of other speakers were willing to share their experience and knowledge with us and with each other. We ourselves were very surprised at how well received this workshop was.

The conference was both fruitful in terms of the exchange of international experiences and in facilitating informal networking sessions that resulted in the formation of closer collaborations and even friendships. Throughout the event, participants engaged in meaningful discussions that not only enriched their professional knowledge but also laid the groundwork for future partnerships and ongoing communication among peers from different countries. These informal gatherings proved to be just as significant as the formal sessions, fostering a sense of community and shared purpose among attendees. This environment contributed to the establishment of new networks, offering a strong foundation for continued cooperation and the development of deeper professional relationships in the future.

Richard Grover (UK)

Workshop documentation and FIG- Position on AVM to follow

The organisers are currently working on a comprehensive documentation of the workshop. This will include all the presentations and a summary of the results.

Speakers and Participants, with Thomas Dimopoulos (CY), 9th person from right

On this basis and on the basis of further discussions with the experts, we also want to work on a paper that presents the position of the FIG (Commission 9) on the use of artificial intelligence in valuation and the role of mass appraisal in shaping the future of the valuation profession. This paper will form the basis for further in-depth discussions and academic papers.

Coming up: 60-Minutes-Knowledge-Meetings (online)

Until the workshop is repeated next year, it is planned to hold regular "Knowledge Meetings" via video. The first "60 Minutes Knowledge Meeting" on the topic of "Model Education with Machine E-Learning in Assessment" is expected to take place on 20 June 2024 at 15:00. Speaker will be Russ Thingan (USA).

Russ Thingan (USA)

Russ Thingan excelled particularly in the study of Behavioral (Social) Economics and incorporates behavioural economic paradigms in his work to this day. He has more than thirty years of experience in real property mass appraisal and has contributed to several published IAAO (International Association of Assessing Officers) textbooks. Russ is currently a member of the IAAO Research and Standards Committee.  He has been teaching Thimgan & Associates mass valuation courses consecutively since 1997, and has consulted for government offices in 42 states in the U.S. as well as jurisdictions in Canada and the countries of Latvia and Serbia.

Peter Ache
April 2024