The authors analyse Automated Valuation Models (AVMs) integrated with artificial intelligence (AI), positioning
them as pivotal in creating a fair, sustainable, and interconnected urban real estate sector. As urbanisation advances, AVMs
powered by AI are increasingly central to property valuation, offering data-driven insights that transform traditional appraisal
methods. Unlike conventional inspections, AI-enabled AVMs process large datasets for property value estimation, aligning them
with urban planning needs. This study highlights AVMs' potential to advance urban real estate practices while addressing challenges
in ethics, transparency, and governance. By focusing on the synergy between technology and valuation, AVMs emerge as
key in developing adaptive urban planning. Additionally, the paper proposes an ethical framework for AI use in urban contexts,
ensuring alignment with professional standards and public trust, serving as a roadmap for practitioners and policymakers in
integrating AI responsibly into urban property valuation.