A Cyprus Chamber of Commerce and Industry (Keve) member association representing property valuers has warned that online property valuation tools and automated valuation systems should only be treated as indicative estimates and cannot replace assessments carried out by qualified professionals.

Specifically, the property valuers’ association, responding to the growing use of digital platforms and automated systems to estimate property values, said the public should understand both the benefits and the limitations of these services before relying on them.

It explained that technological systems and online valuation platforms can serve as useful supporting tools by providing an initial indication or approximation of a property’s likely value.

However, the association stressed that these systems are generally based on automated models which depend on the availability and quality of data, as well as general parameters, meaning they cannot always capture the unique characteristics of every property.

“Automated or online valuation systems do not replace a professional valuation,” the association said.

It added that “their results should be treated solely as indicative and not as a complete valuation for the purposes of making important financial, investment, financing or other decisions.”

The association argued that a valuation can only be considered complete, well documented and reliable when it is carried out by a suitably qualified professional property valuer.

It explained that on-site inspection, assessment of a property’s actual condition and special characteristics, knowledge of the local market and the application of recognised professional standards all form essential parts of the valuation process.

To illustrate its position, the association compared online property valuations with internet searches for medical symptoms.

“Just as an online search for symptoms may provide an initial general indication but cannot replace an examination by a doctor, who takes a full medical history and assesses the specific characteristics of each case, an automated valuation from a website cannot replace a professional valuer,” the association said.

It added that the professional valuer physically inspects the property, understands the local market and applies professional judgement.

“Just as no serious medical decision is made on the basis of an online diagnosis, no important financial decision should rely exclusively on an online valuation,” the association stated.

The association urged the public to carefully consider the nature and limitations of any online valuation service before relying on it.

It said that whenever a reliable determination of a property’s value is required, individuals should seek the services of a professional property valuer.

The association also expressed support for the responsible use of technology by its members, provided it is used within the framework of international professional standards while preserving the professional judgement of the valuer.

The statement added that this position is fully aligned with the views of international valuation standard-setting bodies and European supervisory authorities.

Regarding the International Valuation Standards (IVS) issued by the International Valuation Standards Council (IVSC), the association said the council’s position paper on automated valuation models concludes that a fully automated valuation model, operating without the involvement of a valuer, cannot produce a valuation that complies with IVS because it lacks the professional judgement required under the standards.

It also referred to IVS 2025, which entered into force on January 31, 2025, saying the updated standards introduce explicit requirements covering governance, data, valuation models and quality controls.

The association said IVS 2025 defines an automated valuation model as one that generates calculations without applying professional judgement.

It further cited the IVSC’s 2025 position paper on artificial intelligence, saying it confirms that the valuer must always remain responsible for selecting data, assessing valuation models and verifying their results.

The association also referred to the 2025 edition of the RICS Valuation Global Standards, commonly known as the Red Book, which states that where artificial intelligence, automated valuation models or valuation software are used, the outcome can only be regarded as a written valuation if a professional valuer has applied their own judgement to the result.

It said the 2025 edition strengthened the mandatory standards governing automated valuation models and introduced new standards covering automation and artificial intelligence.

In addition, the association cited the European Banking Authority’s lending and loan monitoring guidelines, saying they require properties used as collateral for loans to be valued by a professional valuer.

It explained that although advanced statistical models may be used in a supporting role, responsibility for the valuation remains with the professional valuer.

The association also referred to the European Valuation Standards and the European AVM Alliance, saying they classify statistical valuation methods as a separate category, clearly distinguished from a full valuation undertaken by a professional while recognising their role as supporting tools.

The statement concluded by reminding the public that property valuation is a legally regulated professional activity in Cyprus, and may only be carried out by registered members of the Cyprus Scientific and Technical Chamber (Etek) in the relevant professional discipline.