# RECORD eb83972cd040998a7f0e60c77ea37896ff8f21fc # TITLE: BUILDING INFORMATION MODELING POTENTIAL FOR AN ENHANCED REAL ESTATE VALUATION APPROACH BASED ON THE HEDONIC METHOD # YEAR: 2019.0 VENUE: nan DOI: 10.2495/bim190261 # AUTHORS: Siham El Yamani; M. Ettarid; R. Hajji # PAGES: 12 CANDIDATE TABLE PAGES (1-based): [] # ABSTRACT: Housing valuation is a process of determining an accurate estimate of the market price of a property. Current methods and tools are mainly based on sales prices comparison with recent transactions, which is the major method applied in the taxation and cadastre services in Morocco. However, housing properties are in general heterogenous and unique in their shapes, construction materials, orientation, location and other environmental factors. These parameters are taken into consideration by the hedonic pricing method. Many of the researches about housing valuation are based on the geographical location as the main spatial factor affecting the property value. 2D GIS (Geographic Information System) applications used in this respect are limited in terms of communicating efficiently the complexity of a 3D building structure and modeling accurately environmental factors. Such factors could only be considered through 3D modeling and building information modeling (BIM). In this paper, we will try, through a brief review, to point out the weaknesses and drawbacks of the conventional valuation methods. Then, we will demonstrate the BIM potential in real valuation as an emerging technology and process used to mainly improve the housing valuation system based on the hedonic approach. Many studies are, nowadays, widely exploring the use of BIM in the building cost estimation, but this is an embryonic area of research in real estate valuation system. Therefore, this paper examines also the first methodological guidelines for an advanced housing valuation approach by implementing a BIM prototype based on the hedonic pricing method. ===== PAGE 1 (score 7, numeric-paren 0, table-words 0, var-words 7) ===== BUILDING INFORMATION MODELING POTENTIAL FOR AN ENHANCED REAL ESTATE VALUATION APPROACH BASED ON THE HEDONIC METHOD SIHAM EL YAMANI, MOHAMED ETTARID & RAFIKA HAJJI College of Geomatic Sciences and Surveying Engineering, IAV Hassan II Rabat, Morocco ABSTRACT Housing valuation is a process of determining an accurate estimate of the market price of a property. Current methods and tools are mainly based on sales prices comparison with recent transactions, which is the major method applied in the taxation and cadastre services in Morocco. However, housing properties are in general heterogenous and unique in their shapes, construction materials, orientation, location and other environmental factors. These parameters are taken into consideration by the hedonic pricing method. Many of the researches about housing valuation are based on the geographical location as the main spatial factor affecting the property value. 2D GIS (Geographic Information System) applications used in this respect are limited in terms of communicating efficiently the complexity of a 3D building structure and modeling accurately environmental factors. Such factors could only be considered through 3D modeling and building information modeling (BIM). In this paper, we will try, through a brief review, to point out the weaknesses and drawbacks of the conventional valuation methods. Then, we will demonstrate the BIM potential in real valuation as an emerging technology and process used to mainly improve the housing valuation system based on the hedonic approach. Many studies are, nowadays, widely exploring the use of BIM in the building cost estimation, but this is an embryonic area of research in real estate valuation system. Therefore, this paper examines also the first methodological guidelines for an advanced housing valuation approach by implementing a BIM prototype based on the hedonic pricing method. Keywords: BIM, housing valuation, cost estimation, real estate valuation, hedonic method. 1 INTRODUCTION Housing market becomes a major economic issue of our times, that is tackled by many challenges such as unaffordability, unsustainability, speculation etc. Nowadays, seeking for the best housing offer which combines environment quality and indoors properties at an affordable price, becomes a difficult task. A housing valuation exercise is basically conducted by different players which include real estate agents, appraisers, mortgage lenders, property developers, among others [1]. The estimation of a property value usually applies both mathematical and computational approaches/methods which have been classified into traditional and advanced methods [1]. Researchers have argued that the traditional real estate valuation methods are mainly inaccurate and subjective [2]. While, advanced methods have demonstrated an enhanced property valuation estimate [1]. In a Moroccan context, where the regulation of real estate valuation and structuring of the real estate market is in progress, the efforts made, in terms of creating real estate observatories for better transparency of the local market and the introduction of a real estate tax referential by the General Tax Direction, remain mostly insufficient initiatives. Indeed, the lack of legislation and transparency of the real estate market (speculation) and the difficulty of accessing reliable and recent real estate data remain the main obstacles to effective real estate valuation. Fig. 1 shows an extract of maps representing the tax reference system applied by region. Building Information Modelling (BIM) in Design, Construction and Operations III 305 www.witpress.com, ISSN 1743-3509 (on-line) WIT Transactions on The Built Environment, Vol 192, © 2019 WIT Press doi:10.2495/BIM190261