The future of real estate valuation: Sustainability, AI & global trends – an interview with Miguel Ángel Castillo, CEO of Valmesa

In this interview, Miguel Ángel shares insights on market trends, the role of technology in valuations, and the growing importance of sustainability in real estate.

How would you describe current trends in property valuation in Spain, and what are the most significant changes you have observed in recent years?

"The property valuation market in Spain has changed dramatically in recent years, driven by economic growth, sustainability concerns, and increasing global interest," says Castillo. "Cities like Madrid, Barcelona, and Valencia are seeing sustained demand, and investors are becoming more selective in their property choices."

One of the most notable shifts is the integration of sustainability criteria into investment and financing decisions. "Properties with energy efficiency ratings, environmental certifications, or renewable energy systems now have a distinct competitive advantage," he explains. "European regulations are also shaping this change, pushing the industry towards greener, more sustainable assets."

Globalisation is another key trend. "International investors see Spain as a stable and attractive real estate market," Castillo notes. "Competitive rental yields, the climate, and quality of life make Spain a prime destination. But with this comes the challenge of explaining Spain’s legal and tax system to foreign investors and aligning valuation processes with global expectations."

With advancements such as AI and data analytics, how has technology influenced property valuations at Valmesa, and what future developments do you foresee in the sector?

"Technology is revolutionising how we work at Valmesa," Castillo states. "AI and big data analytics are allowing us to process vast amounts of market data in real time, improving the accuracy and efficiency of our valuations."

Valmesa uses advanced AI-driven models to provide more detailed and personalised reports. "We are not just looking at past transactions anymore. We can now predict market trends, identify risks, and offer better insights to our clients."

Looking ahead, Castillo predicts that AI will play an even greater role in enhancing transparency and traceability in valuation processes. "Predictive models will be key in forecasting market trends and identifying investment opportunities before they fully emerge," he adds.

From your experience, what are the most important steps valuation firms can take to maintain transparency and foster consumer confidence in an ever-changing market?

"Transparency is the foundation of trust," Castillo emphasises. "At Valmesa, we ensure our valuation processes are fully standardised and auditable, giving our clients clear, accessible reports they can rely on."

An open dialogue with stakeholders is also crucial. "Real estate agents, financial institutions, and investors need clear, honest communication. That is why we focus on delivering insights that are not only data-driven but also easy to understand," he explains.

Additionally, Castillo highlights the importance of continuous education in the industry. "The market is evolving rapidly, and staying up to date with regulations and trends is essential. We invest heavily in training our teams to ensure we provide the highest level of expertise."

As sustainability becomes increasingly important in real estate, how is Valmesa incorporating sustainable practices or evaluating the value of sustainable properties?

"Sustainability is no longer optional—it is a fundamental pillar of real estate valuation," Castillo asserts. "Investors and financial institutions are prioritising properties with strong ESG (Environmental, Social, and Governance) credentials."

To address this shift, Valmesa has introduced sustainable valuations, integrating ESG criteria into property assessments. "Energy efficiency, the use of eco-friendly materials, and renewable energy systems are now just as important as location and size when determining a property’s value," he explains.

A unique differentiator for Valmesa is its environmental risk maps. "These allow us to assess the potential long-term risks of climate factors—floods, wildfires, earthquakes—on property values. This is crucial for both investors and insurance companies," Castillo notes.

The impact of climate events on valuation has become increasingly evident. "We saw this first-hand with the La Palma volcanic eruption in 2021 and the DANA storms in Valencia. These events directly influenced property values, risk perceptions, and even financing conditions in affected areas."

For agents and industry professionals looking to better understand property valuation, what key skills or knowledge areas would you recommend developing to stay competitive and informed?

"A strong understanding of market analysis and regulatory trends is essential for real estate professionals," Castillo advises. "Agents should not only focus on location and property features but also on sustainability, risk factors, and financial viability."

Staying informed about local and European regulations is also key. "The industry is constantly evolving, and those who keep learning will always have an advantage," he concludes.

A special thank you to Miguel Ángel Castillo Cid and the team at Valmesa for sharing their valuable expertise and insights with us.

With sustainability, AI, and globalisation shaping the real estate landscape, valuation firms like Valmesa are playing a crucial role in providing accurate, reliable, and forward-thinking insights.

For real estate agents and investors looking to stay competitive and well-informed, collaborating with valuation experts can provide a powerful advantage in an increasingly complex market.