A Comprehensive Overview Regarding the Impact of GIS on Property Valuation

Abstract

In the face of pressing global challenges such as climate change, socioeconomic inequalities, and rapid urbanization, ensuring sustainable development in the regions has become essential. The COVID-19 pandemic has highlighted how vulnerable cities are to unforeseen crises and underscored the urgent need for proactive urban planning strategies capable of navigating dynamic and unpredictable futures. In this context, the use of geographic information systems (GIS) offers researchers and decision makers a distinct advantage in the study of spatial data and enables the comprehensive study of spatial and temporal patterns in various disciplines, including real estate valuation. Central to the integration of modern technology into real estate valuation is the need to mitigate the inherent subjectivity of traditional valuation methods while increasing efficiency through the use of mass appraisal techniques. This study draws on extensive academic literature comprising 103 research articles published between 1993 and January 2024 to shed light on the multifaceted application of GISs in real estate valuation. In particular, three main areas are addressed: (1) hedonic models, (2) artificial intelligence (AI), and mathematical appraisal models. This synthesis emphasizes the interdependence of numerous societal challenges and highlights the need for interdisciplinary collaboration to address them effectively. In addition, this study provides a repertoire of methodologies that underscores the potential of advanced technologies, including artificial intelligence, GISs, and satellite imagery, to improve the subjectivity of traditional valuation approaches and thereby promote greater accuracy and productivity in real estate valuation. By integrating GISs into real estate valuation methodologies, stakeholders can navigate the complexity of urban landscapes with greater precision and promote equitable valuation practices that are conducive to sustainable urban development.