AbstractThis report presents ValuInsight AI, a sophisticated property valuation algorithm that represents a fundamental shift in how we understand and quantify real estate value. By weaving together established economic theories with advanced machine learning, the model moves beyond the opaque nature of traditional “black box” systems to offer a transparent and economically coherent framework. The algorithm’s reliability was established through extensive testing across a diverse array of property types and varied economic timeframes within the United Kingdom. Notably, empirical validation was conducted within the Tyne and Wear region, with a particular focus on the unique market dynamics of Newcastle upon Tyne and Sunderland, where the model demonstrated a significant reduction in valuation errors and historical biases compared to existing methodologies. While ValuInsight AI offers unparalleled accuracy by integrating micro-level property characteristics with broader macroeconomic indicators, its scope remains naturally aligned with the availability of high-resolution local data. It is important to note that while the model excels at predicting market trends and standard valuations, its current limitations include the inherent unpredictability of sudden global economic shocks and the nuances associated with exceptionally unique or non-standard assets. Ultimately, ValuInsight AI serves as a powerful foundational tool designed to augment professional expertise and foster transparency across the evolving UK property landscape.
Victor Joes Obasse (Wed,) studied this question.